8-K

CRH PUBLIC LTD CO 8-K Report (Nov 23, 2021)

Filed November 23, 2021For Securities:CRH

Summary

CRH Public Limited Company (CRH) issued a trading update on November 23, 2021, for the nine months ending September 30, 2021. The company reported robust performance with sales up 11% year-over-year to $22.8 billion and EBITDA increasing by 15% to $3.9 billion. This growth was driven by strong underlying demand, successful pricing strategies across key markets, and the company's integrated solutions model, which led to further margin expansion. CRH also highlighted its robust cash generation and disciplined capital allocation, evidenced by a year-end net debt to EBITDA ratio expected to be around 1.2x and $1.4 billion spent on acquisitions year-to-date. The company provided a positive outlook for the full year 2021, projecting EBITDA to exceed $5.25 billion, well ahead of the prior year. This optimism is supported by current trading conditions and momentum. Looking ahead to 2022, CRH anticipates continued positive demand and pricing trends, further bolstered by the recent US infrastructure package. The company remains committed to sustainability goals, including its ambition for carbon neutrality by 2050.

Key Highlights

  • 1Nine-month sales increased by 11% to $22.8 billion, with like-for-like sales up 7%.
  • 2EBITDA for the nine months rose 15% to $3.9 billion, with EBITDA margins expanding by 50 basis points to 17.1%.
  • 3Full-year 2021 EBITDA is projected to exceed $5.25 billion, indicating a record performance.
  • 4The company completed $1.4 billion in acquisitions year-to-date, with a strong pipeline of future opportunities.
  • 5A share buyback program is ongoing, with $0.8 billion completed year-to-date.
  • 6Expected year-end net debt to EBITDA ratio of approximately 1.2x, reflecting financial discipline and strong cash generation.
  • 7Positive outlook for 2022, anticipating continued demand and pricing strength, with a favorable impact expected from the US infrastructure package.

Frequently Asked Questions

For the nine months ended September 30, 2021, CRH reported a strong performance with sales of $22.8 billion, an 11% increase compared to the prior year. Like-for-like sales were up 7%. EBITDA for the period was $3.9 billion, a 15% increase, with EBITDA margins improving by 50 basis points to 17.1%.

CRH expects to deliver a record performance for the full year 2021, with EBITDA projected to be in excess of $5.25 billion. This outlook is based on current trading conditions and positive momentum across its markets.

CRH continues to demonstrate disciplined capital allocation. The company has spent $1.4 billion on acquisitions year-to-date, with a strong pipeline of further opportunities. Additionally, $0.8 billion has been returned to shareholders through its share buyback program year-to-date. The company anticipates a year-end net debt to EBITDA ratio of approximately 1.2x.

CRH anticipates a continued positive demand and pricing environment in 2022. The recent passage of the $1.2 trillion US infrastructure package is expected to significantly boost infrastructure investment in the US, which should benefit CRH's business.