8-K

CRH PUBLIC LTD CO 8-K Report (Aug 26, 2021)

Filed August 26, 2021For Securities:CRH

Summary

CRH Public Ltd Co reported strong first-half performance for 2021, exceeding prior-year results across key financial metrics. Sales revenue increased by 15% to $14.0 billion, while EBITDA saw a significant jump of 25% to $2.0 billion, accompanied by margin expansion across all divisions. This robust performance was driven by positive underlying conditions in North America and Europe, strong demand in residential repair and improvement, and effective price management and cost control. The company demonstrated strong cash generation, with operating cash flow up 55% to $1.6 billion. This financial strength allowed CRH to increase shareholder returns through a 4.5% interim dividend increase and ongoing share buybacks, alongside significant growth investments of $1.1 billion year-to-date. The outlook for the second half of 2021 remains positive, with expectations for EBITDA to be ahead of the record prior year, supported by improving market conditions, particularly in the US infrastructure funding discussions.

Key Highlights

  • 1First-half 2021 sales revenue reached $14.0 billion, a 15% increase year-over-year.
  • 2EBITDA grew by 25% to $2.0 billion, with continued margin expansion across all divisions.
  • 3Operating cash flow significantly increased by 55% to $1.6 billion.
  • 4The company invested $1.1 billion in growth initiatives (acquisitions and capital expenditure) year-to-date.
  • 5Shareholder returns were enhanced with a 4.5% increase in the interim dividend and ongoing share buyback programs.
  • 6CRH anticipates second-half 2021 EBITDA to exceed the record performance of the prior year.
  • 7The company is making significant progress on sustainability, expecting to achieve its 2030 carbon emissions reduction target by 2025.

Frequently Asked Questions

CRH's strong performance was driven by a combination of factors including positive underlying economic conditions in North America and Europe, robust demand in residential repair, maintenance, and improvement (RMI) activities, effective price management, and disciplined cost control. Volume growth across key product lines like aggregates, cement, and readymixed concrete also contributed significantly.

CRH is returning value to shareholders through an increased interim dividend of 23.0c per share (a 4.5% increase year-over-year) and ongoing share buyback programs. In the first half of 2021, the company returned $0.3 billion through share buybacks and announced a further tranche of up to $0.3 billion.

CRH expects its second-half 2021 EBITDA to be ahead of its record prior year performance. This positive outlook is supported by an improving economic backdrop and good underlying demand in the Americas Materials division, solid construction demand in key European markets, and continued positive residential demand in Building Products. The company is also encouraged by progress in US infrastructure funding negotiations.

CRH has embedded sustainability into its strategy and is making significant progress on decarbonization. The company now expects to achieve its 2030 carbon emissions reduction target by 2025 and remains committed to achieving carbon neutrality by 2050. They believe their integrated model and focus on value-added solutions play a key role in delivering a more sustainable built environment.