8-K

CRH PUBLIC LTD CO 8-K Report (Nov 27, 2019)

Filed November 27, 2019For Securities:CRH

Summary

CRH Public Limited Company has released a trading update for the nine months ended September 30, 2019, indicating a strong performance with a significant increase in EBITDA. The company reported nine-month EBITDA of €3.2 billion, a 27% increase compared to the prior year, driven by improved trading across its Americas Materials, Europe Materials, and Building Products divisions. This performance, coupled with effective profit improvement programs and strategic portfolio management, positions CRH for continued growth. The company also highlighted its active portfolio refinement, completing approximately €2 billion in divestments and €0.7 billion in acquisitions year-to-date. This includes the significant divestment of its Europe Distribution business. CRH is maintaining strong financial discipline, expecting year-end net debt to EBITDA to remain below 2.0x, and is returning capital to shareholders through an ongoing share buyback program, having returned approximately €750 million year-to-date. Overall, CRH anticipates full-year 2019 EBITDA to exceed €4.15 billion, marking another year of progress.

Key Highlights

  • 1Nine-month EBITDA increased by 27% to €3.2 billion, indicating strong operational performance.
  • 2Full-year 2019 EBITDA is projected to exceed €4.15 billion, demonstrating continued positive momentum.
  • 3Active portfolio management included approximately €2 billion in divestments and €0.7 billion in acquisitions year-to-date, signaling strategic business optimization.
  • 4Year-end net debt to EBITDA ratio is expected to be below 2.0x, reflecting strong financial discipline.
  • 5Share buyback program is active, with approximately €750 million returned to shareholders year-to-date, indicating a commitment to shareholder returns.
  • 6Americas Materials Division saw a 4% like-for-like sales increase and a 9% like-for-like EBITDA improvement.
  • 7Positive trading trends in Europe Materials and Building Products divisions, with like-for-like sales up 6% and 3% respectively.

Frequently Asked Questions

The key financial performance indicator highlighted is EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). CRH reported a 27% increase in nine-month EBITDA to €3.2 billion compared to the prior year.

CRH is actively managing its portfolio through divestments and acquisitions. Year-to-date, the company has divested businesses and assets worth approximately €2 billion, including its Europe Distribution business, and made acquisitions totaling approximately €0.7 billion to enhance its strategic positioning.

CRH expects its full-year 2019 EBITDA to exceed €4.15 billion, with positive momentum continuing across all divisions. The company also anticipates a year-end net debt to EBITDA ratio below 2.0x.

The adoption of IFRS 16 Leases has increased depreciation and amortisation expense, as well as net finance costs due to higher lease interest. While it impacts reported figures, the company expects its full-year profit before tax from continued and discontinued operations to be ahead of 2018.