01—Abstract
Summary
Summary of the 10-Q filed May 10, 2024. Cited figures are marked; the original filing is the authoritative source.
CRH plc reported a net income of $114 milliona for the first quarter of 2024, a significant improvement from a net loss of $31 million in the same period of 2023.
Total revenues increased by 2% to $6.5 billionb, driven by pricing progress and contributions from acquisitions, which more than offset lower volumes in Europe. The company also saw a substantial increase in Adjusted EBITDA to $445 million, up 15% year-over-year, with an improved Adjusted EBITDA margin of 6.8%. Strategic capital allocation was a key theme, with $0.8 billion returned to shareholders via dividends and $0.4 billion through share buybacks.
CRH also made significant acquisition investments totaling $2.2 billionc in the quarter, including a large cement and readymixed concrete asset portfolio in Texas. The company expects a favorable market backdrop for the full year 2024, anticipating continued positive pricing momentum and benefiting from infrastructure spending in North America and Europe, despite a subdued outlook for residential construction.
02—Key points
Key Highlights
- Net income turned positive at $114 million in Q1 2024, a substantial turnaround from a $31 million net loss in Q1 2023.
- Total revenues grew 2% to $6.5 billion, driven by price increases and acquisition contributions.
- Adjusted EBITDA increased by 15% to $445 million, with the Adjusted EBITDA margin improving to 6.8%.
- Significant capital deployment includes $0.8 billion in dividends and $0.4 billion in share buybacks during the quarter.
- The company completed $2.2 billion in acquisitions, notably a substantial cement and readymixed concrete portfolio in Texas.
- Divestitures of European Lime operations generated $0.7 billion in proceeds.
- CRH anticipates continued growth in 2024, supported by favorable market conditions and infrastructure spending.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2024, CRH Public Ltd Co kept $0.02.
- Revenue$6.53B100.0%
- Cost of revenue−$4.73B72.3%
- Gross profit$1.81B27.7%
- Operating costs−$1.78B27.2%
- Operating income$28.0M0.4%
- Interest, other & tax$88.0M1.3%
- Net income$116.0M1.8%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed May 10, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $6.53B$6.43B | +1.6% |
| Cost of Revenue | $4.73B$4.81B | −1.7% |
| Gross Profit | $1.81B$1.62B | +11.6% |
| SG&A Expenses | $1.79B$1.62B | +10.2% |
| Operating Income | $28.00M$2.00M | +1300.0% |
| Interest Expense | $133.00M$81.00M | +64.2% |
| Net Income | $116.00M-$28.00M | +514.3% |
| EPS (Basic) | $0.16$-0.05 | +420.0% |
| EPS (Diluted) | $0.16$-0.05 | +420.0% |
| Shares Outstanding (Basic) | 687.80M742.90M | −7.4% |
| Shares Outstanding (Diluted) | 693.40M742.90M | −6.7% |
05—Questions
Frequently Asked Questions
What was CRH's profitability in the first quarter of 2024?
CRH reported a net income of $114 million for the first quarter of 2024, a significant improvement compared to a net loss of $31 million in the same period of 2023. This turnaround was driven by higher gross profit and other nonoperating income, which offset increased SG&A and interest expenses.
How did CRH's revenue perform in the first quarter of 2024?
Total revenues increased by 2% to $6.5 billion in the first quarter of 2024, compared to $6.4 billion in the prior year. This growth was primarily attributed to continued pricing progress and contributions from acquisitions, which helped offset lower volumes experienced in Europe.
What is CRH's strategy for capital allocation in the current period?
CRH is actively returning capital to shareholders through dividends and share buybacks. In the first quarter of 2024, $0.8 billion was paid in dividends and $0.4 billion was used for share repurchases. The company also continued its strategy of growth through acquisitions, investing $2.2 billion in the quarter.
What is the outlook for CRH in the remainder of 2024?
CRH expects a favorable market backdrop for 2024, with continued positive pricing momentum. The company anticipates benefiting from significant infrastructure activity in North America and Europe. While residential construction is expected to remain subdued, CRH is well-positioned for another year of growth, assuming normal seasonal weather patterns and macroeconomic stability.
06—Continue