8-K

CRH PUBLIC LTD CO 8-K Report (Feb 28, 2019)

Filed February 28, 2019For Securities:CRH

Summary

CRH Public Limited Company reported its 2018 full-year results on February 28, 2019, highlighting a record EBITDA of €3.37 billion. Despite facing weather disruptions and an inflationary cost environment, the company demonstrated continued profit growth and margin improvement. Strong financial discipline was evident through €2.4 billion in operating cash flows and a year-end net debt to EBITDA ratio below 2.1x. CRH also returned €0.8 billion to shareholders through its share buyback program and increased its dividend per share by 6% to 72.0c. The company's sales reached €26.8 billion, a 6% increase over 2017, with like-for-like sales up 3%. The Americas region showed robust growth, benefiting from favorable market fundamentals and acquisitions, notably the significant purchase of Ash Grove Cement Company, which solidified CRH's market leadership in North America. Europe also saw positive underlying momentum, though some markets faced challenges like Brexit uncertainty and increased input costs. Asia experienced inflationary pressures impacting volumes and prices. Looking ahead, CRH expressed confidence in its strong market positioning, anticipating continued progress and growth in 2019. The company's strategic focus remains on continuous business improvement, margin expansion, strong cash generation, and delivering shareholder returns through efficient capital allocation and disciplined financial management.

Key Highlights

  • 1Record EBITDA delivery of €3.37 billion for the full year 2018.
  • 2Sales revenue increased by 6% to €26.8 billion, with like-for-like sales up 3%.
  • 3Shareholders received €0.8 billion through the share buyback program, and the dividend per share increased by 6% to 72.0c.
  • 4Strong financial discipline maintained with €2.4 billion in operating cash flows and a net debt/EBITDA ratio below 2.1x.
  • 5Completed significant acquisition of Ash Grove Cement Company, strengthening market position in North America.
  • 6Americas region demonstrated strong performance with 4% like-for-like sales growth.
  • 7Despite weather disruption and cost inflation, profit growth and margin improvement were achieved.

Frequently Asked Questions

CRH achieved record EBITDA of €3.37 billion, an increase of 7% over 2017. Sales revenue grew by 6% to €26.8 billion, and earnings per share (EPS) from continuing operations increased by 11% to 172.0c. The company also maintained strong financial discipline, generating €2.4 billion in operating cash flows and ending the year with a net debt to EBITDA ratio below 2.1x.

CRH returned €0.8 billion to shareholders through its share buyback program. Additionally, the Board recommended a final dividend of 52.4c per share, bringing the total dividend for the year to 72.0c, a 6% increase compared to 2017.

The Americas region benefited from favorable market fundamentals and good demand, with like-for-like sales up 4%. Europe showed positive underlying momentum, though experienced some challenging conditions. Asia faced inflationary pressures that impacted volumes and prices. The company also completed significant acquisitions, notably Ash Grove Cement Company, which bolstered its position in North America.

CRH expects continued progress and growth in 2019, driven by favorable market dynamics in the US, continued progress in key European markets, and a focus on business improvement, margin expansion, and cash generation. The company remains well-positioned to build on its 2018 performance.