Summary
CRH plc reported a strong financial year in 2019, with a 6% increase in revenue to €28.3 billion and a significant 25% rise in EBITDA to €4.2 billion, driven by positive construction demand in its core markets and successful portfolio reshaping. The company divested its Europe Distribution business, focusing capital on higher-growth areas and integrating acquisitions like Ash Grove Cement. CRH returned €1.4 billion to shareholders through dividends and share buybacks, while strengthening its balance sheet with a Net Debt/EBITDA ratio of 1.7x. The company highlighted operational improvements across its three divisions: Americas Materials, Europe Materials, and the newly established Building Products division. The Americas Materials division saw a 16% revenue increase, supported by favorable economic conditions in the US. Europe Materials experienced a 6% sales increase despite some market challenges. The Building Products division reported stable sales with a significant EBITDA increase, reflecting successful integration and commercial excellence. CRH also emphasized its commitment to sustainability, achieving its 2020 CO2 reduction target ahead of schedule and setting ambitious new goals for 2030.
Key Highlights
- 1Revenue increased by 6% to €28.3 billion, with EBITDA rising by 25% to €4.2 billion, indicating strong top-line and profitability growth.
- 2CRH completed the divestment of its Europe Distribution business, continuing its strategy of portfolio reshaping to focus on higher-growth segments and businesses.
- 3The company invested €1.9 billion in its business through bolt-on acquisitions (€0.7 billion) and capital investment (€1.2 billion), while returning €1.4 billion to shareholders via dividends and share buybacks.
- 4Net Debt/EBITDA ratio improved to 1.7x from 2.1x in the prior year, demonstrating enhanced balance sheet strength.
- 5Americas Materials division showed robust growth with a 16% revenue increase and 31% EBITDA increase, driven by strong US market conditions.
- 6Europe Materials division saw a 6% revenue increase and a 15% EBITDA increase, supported by pricing and performance initiatives.
- 7The newly formed Building Products division reported a 22% increase in EBITDA, reflecting successful operational and commercial improvements across all product groups.
- 8CRH achieved its 2020 target for CO2 emissions reduction one year ahead of schedule and reiterated its commitment to sustainability with ambitious 2030 targets.