Summary
CRH plc's 2016 Annual Report details a strong financial performance, exceeding expectations from significant acquisitions made in 2015. The company reported a profit after tax of €1.3 billion, a 74% increase over the previous year, with earnings per share (EPS) rising by 69% to 150.2c. Sales increased by 15% to €27.1 billion, driven by the full-year contribution of the acquired LafargeHolcim (LH) assets and C.R. Laurence (CRL) business, alongside a 3% organic sales increase from underlying operations. The Group successfully integrated these businesses, realized €89 million in synergies, and improved its debt-to-EBITDA ratio to 1.7x, returning it to normalized levels ahead of commitments. The company demonstrated robust operational performance across its global segments, particularly in the Americas, which saw an 8% sales increase and a 38% profit rise. Europe also performed well, with total sales up 20% and operating profit doubling, supported by the integration of LH assets and a recovery in key markets. The Board is recommending a 4% increase in the full-year dividend to 65.0c per share, reflecting the company's strong performance and positive outlook. CRH remains committed to its strategy of continuous improvement, disciplined growth through acquisitions, and portfolio optimization, positioning itself for continued growth and value creation in 2017.
Key Highlights
- 1Profit after tax increased by 74% to €1.3 billion.
- 2Sales grew by 15% to €27.1 billion, driven by acquisitions and 3% organic growth.
- 3Acquired LH Assets and CRL businesses successfully integrated, realizing €89 million in synergies.
- 4Net debt to EBITDA ratio improved to 1.7x, returning to normalized levels.
- 5Proposed final dividend increased by 4% to 65.0c per share.
- 6Strong performance noted across Americas (8% sales growth, 38% profit growth) and Europe (20% sales growth, doubled operating profit).
- 7Continued focus on bolt-on acquisitions and portfolio management to drive value creation.