10-KPeriod: FY2017

CRH PUBLIC LTD CO Annual Report, Year Ended Dec 31, 2017

Filed March 9, 2018For Securities:CRH

Summary

CRH plc's 2017 Annual Report highlights a year of continued growth, driven by strong performance in the Americas and a positive momentum in Europe. The company reported record EBITDA of €3.3 billion, a 6% increase from the prior year, and profit after tax increased by 51% to €1.9 billion. A key strategic move was the divestment of the Americas Distribution business for US$2.6 billion, completed in early 2018, with proceeds to be reinvested in higher-growth areas. Significant acquisitions were made, including Suwannee American Cement in Florida and the agreement to acquire Ash Grove Cement, strengthening CRH's position in the US cement market. The Group also completed 34 acquisition and investment transactions totaling €1.9 billion in 2017, demonstrating a commitment to disciplined growth and portfolio optimization. The company's financial discipline remained strong, with a net debt/EBITDA ratio of 1.8x, and the Board recommended a 5% increase in the full-year dividend to 68.0c per share.

Key Highlights

  • 1Record EBITDA of €3.3 billion, a 6% increase year-over-year.
  • 2Profit after tax increased 51% to €1.9 billion, with Earnings Per Share (EPS) rising 51% to 226.8c.
  • 3Divestment of Americas Distribution business for US$2.6 billion, with proceeds to be reinvested.
  • 4Acquisition of Suwannee American Cement and agreement to acquire Ash Grove Cement to bolster US cement market presence.
  • 5Total acquisition spend of €1.9 billion across 34 transactions, demonstrating active portfolio development.
  • 6Net debt/EBITDA ratio remained strong at 1.8x, indicating financial discipline.
  • 7Proposed 5% increase in full-year dividend to 68.0c per share.

Frequently Asked Questions

CRH reported a record EBITDA of €3.3 billion, a 6% increase from 2016. Profit after tax rose by 51% to €1.9 billion, and Earnings Per Share (EPS) increased by 51% to 226.8c. The Return on Net Assets (RONA) improved to 10.6% from 9.7% in the previous year. The company maintained financial discipline with a net debt/EBITDA ratio of 1.8x.

CRH's primary strategic move was the decision to divest its Americas Distribution business (Allied Building Products) for US$2.6 billion, a sale completed in January 2018. The company also actively pursued acquisitions, spending €1.9 billion on 34 transactions, including key acquisitions in the US cement sector like Suwannee American Cement and the agreement to acquire Ash Grove Cement, aiming to strengthen its position in high-growth markets.

The Americas Division saw sales increase by 4% to €12.3 billion, supported by a strong US economy. Europe's overall sales increased by 1% to €12.5 billion, with modest recovery in key markets. The Asia division experienced challenging pricing environments, particularly in the Philippines, despite robust underlying market fundamentals.

CRH is committed to disciplined capital allocation, focusing on value-creating acquisitions and optimizing its portfolio. The company demonstrated this by reinvesting proceeds from the Americas Distribution divestment into growth areas. CRH also focuses on shareholder returns, with the Board recommending a 5% increase in the full-year dividend to 68.0c per share, reflecting its commitment to progressive dividend growth.