8-K

CRH PUBLIC LTD CO 8-K Report (Apr 28, 2021)

Filed April 28, 2021For Securities:CRH

Summary

CRH Public Ltd Co (CRH) filed a Form 6-K on April 28, 2021, providing a trading update for the first quarter of 2021. The company reported a positive start to the year with a 3% increase in like-for-like sales, driven by strong demand and continued pricing progress across its key markets. Despite some weather-related disruptions in materials businesses, particularly in North America and Europe, the Building Products segment saw a robust 12% like-for-like sales increase, led by residential construction. The update also highlighted CRH's active capital allocation, including $0.2 billion spent on acquisitions to expand its Building Products and Infrastructure Products segments, and the completion of a $0.2 billion divestment of its Brazil cement business. Furthermore, the company confirmed its share buyback program is ongoing, with an additional $0.3 billion tranche expected to be completed by June 2021. CRH anticipates its first-half Group EBITDA to be significantly ahead of the prior year, which was impacted by COVID-19 disruptions.

Key Highlights

  • 1Q1 2021 like-for-like sales increased by 3% year-over-year, indicating a positive start to the year.
  • 2Strong underlying demand and favorable pricing progress were noted across key markets.
  • 3The Building Products segment performed particularly well with a 12% increase in Q1 like-for-like sales, driven by residential construction.
  • 4CRH completed the divestment of its Brazil cement business for $0.2 billion and invested approximately $0.2 billion in new acquisitions during the year to date.
  • 5A share buyback program is active, with an additional $0.3 billion tranche set to be completed by June 24, 2021.
  • 6The company expects first-half 2021 Group EBITDA to be substantially ahead of the prior year, which experienced COVID-19 impacts.
  • 7Health and safety remain a top priority amidst ongoing COVID-19 impacts in various markets.

Frequently Asked Questions

CRH reported a positive start to 2021 with a 3% increase in like-for-like sales for the first quarter compared to the same period in 2020. This growth was supported by good underlying demand and continued pricing progress in its key markets.

The Building Products segment showed strong performance with a 12% increase in like-for-like sales, largely driven by residential construction, especially in North America. However, the Materials businesses in North America and Europe experienced some weather-related disruptions impacting volumes, although pricing remained favorable.

CRH has been actively managing its capital by completing a $0.2 billion divestment of its Brazil cement business and investing $0.2 billion in acquisitions year-to-date. The company also continues its share buyback program, with an additional $0.3 billion tranche planned for completion by June 2021. CRH anticipates its first-half 2021 Group EBITDA to be significantly ahead of the prior year.

Despite some near-term uncertainties, CRH expects a further normalization in its markets in the second half of the year as the health situation improves. The company believes its resilient business model and strong balance sheet position it well to capitalize on future growth opportunities.