Summary
CRH plc's 2011 Form 20-F highlights a year of modest sales growth and improved profitability, demonstrating resilience amidst challenging economic conditions, particularly in Europe. The company reported an increase in revenue to €18.1 billion and a significant rise in operating profit to €871 million, driven by a 5% like-for-like sales increase and benefits from restructuring initiatives. EBITDA also saw a slight increase to €1.7 billion. The company maintained its dividend per share at 62.5c, improving dividend cover. CRH continued its strategy of geographic diversification and growth through acquisitions, investing €610 million in 45 bolt-on transactions. While the European segments faced headwinds from economic uncertainty and austerity measures, the Americas segments showed signs of stabilization and modest growth. The company's financial position remains strong with a net debt to EBITDA ratio of 2.1 times and robust liquidity, supported by significant undrawn committed bank facilities.
Key Highlights
- 1Sales revenue increased by 5% to €18.1 billion, with like-for-like sales up by nearly 5%.
- 2EBITDA (as defined) rose by 3% to €1.7 billion, despite input cost increases.
- 3Operating profit saw a substantial increase of 25% to €871 million, benefiting from lower restructuring and impairment charges.
- 4Earnings per share (EPS) grew by 35% to 82.6c, with dividend per share maintained at 62.5c.
- 5Net debt remained stable at €3.5 billion, with a net debt to EBITDA ratio of 2.1 times.
- 6The company completed 45 acquisitions for €610 million, continuing its growth-through-acquisition strategy.
- 7CRH has a strong liquidity position with €1.3 billion in cash and liquid investments and €1.9 billion in undrawn committed bank facilities.