10-KPeriod: FY2020

CRH PUBLIC LTD CO Annual Report, Year Ended Dec 31, 2020

Filed March 12, 2021For Securities:CRH

Summary

CRH plc's 2020 Annual Report highlights a resilient performance despite the challenges of the COVID-19 pandemic. The company reported sales of $27.6 billion, a slight decrease of 2% from 2019, attributed to reduced construction activity in some markets due to health restrictions. However, EBITDA grew by 3% to $4.6 billion, demonstrating strong cost management and operational efficiencies. Profit after tax was impacted by non-cash impairment charges of $0.8 billion, primarily related to UK and China assets. Excluding these charges, profit after tax increased by 18% to $2.0 billion. Financially, CRH strengthened its balance sheet with net debt decreasing by $1.6 billion to $5.9 billion, resulting in a lower Net Debt/EBITDA ratio of 1.3x. The company also demonstrated a strong commitment to shareholder returns, recommending a 25% increase in the dividend per share to 115.0 cents for 2020 and intending to recommence its share buyback program. The company continues to focus on strategic growth through bolt-on acquisitions and sustainable business practices, with 46% of revenue derived from sustainable products.

Key Highlights

  • 1Sales of $27.6 billion, a 2% decrease from $28.1 billion in 2019.
  • 2EBITDA increased by 3% to $4.6 billion (2019: $4.5 billion), with like-for-like EBITDA up 5%.
  • 3Profit after tax was $1.2 billion, impacted by $0.8 billion in non-cash impairment charges. Excluding impairments, profit after tax was $2.0 billion, up 18%.
  • 4Net debt decreased by $1.6 billion to $5.9 billion, with Net Debt/EBITDA improving to 1.3x (2019: 1.7x).
  • 5Proposed total dividend per share of 115.0 cents, a 25% increase from 2019.
  • 6Invested $0.4 billion in 17 bolt-on acquisitions.
  • 746% of revenue generated from products with enhanced sustainability attributes.

Frequently Asked Questions

CRH reported resilient performance despite the pandemic. Sales slightly decreased by 2% to $27.6 billion due to reduced construction activity in certain markets caused by health restrictions. However, the company effectively managed costs and improved operational efficiencies, leading to a 3% increase in EBITDA to $4.6 billion.

CRH recognized non-cash impairment charges totaling $0.8 billion in 2020, primarily related to assets in the UK and an associate investment in China. These charges reduced the reported profit after tax to $1.2 billion. Excluding these impairments, the profit after tax increased by 18% to $2.0 billion, indicating strong underlying operational performance.

CRH strengthened its financial position by reducing net debt by $1.6 billion to $5.9 billion, improving its Net Debt/EBITDA ratio to 1.3x. The company also demonstrated its commitment to shareholder returns by proposing a 25% increase in the dividend per share to 115.0 cents for 2020 and intends to recommence its share buyback program.

Sustainability is a strategic imperative for CRH. In 2020, 46% of its revenue came from products with enhanced sustainability attributes. The company is committed to increasing this to 50% by 2025 and has set ambitious targets for carbon reduction, aiming for carbon neutrality along the cement and concrete value chain by 2050.