8-K

CRH PUBLIC LTD CO 8-K Report (Mar 3, 2022)

Filed March 3, 2022For Securities:CRH

Summary

CRH Public Limited Company's 8-K filing on March 3, 2022, reports robust full-year 2021 results, demonstrating a strong performance driven by an integrated solutions strategy. The company achieved record delivery with significant growth in sales, EBITDA, and earnings per share (EPS). Key financial metrics show substantial improvements, including a 12% increase in sales to $31.0 billion and a 16% rise in EBITDA to $5.35 billion, with an improved EBITDA margin. This strong financial performance underpins the company's robust balance sheet and financial flexibility, positioning it well for future growth. The company also highlighted strategic portfolio management actions, including agreement on the divestment of its Building Envelope business for $3.8 billion and $1.5 billion invested in 20 bolt-on acquisitions. CRH continues to focus on shareholder returns through a progressive dividend policy, increasing the full-year dividend per share by 5%, and an ongoing share buyback program. Despite anticipating an inflationary input cost environment and supply chain challenges for 2022, CRH remains optimistic about favourable demand and pricing trends across its key markets, particularly benefiting from infrastructure spending in the Americas.

Key Highlights

  • 1Record delivery in 2021 driven by an integrated solutions strategy, leading to strong profit growth and margin improvement.
  • 2Significant financial performance with a 12% increase in sales to $31.0 billion and a 16% increase in EBITDA to $5.35 billion.
  • 3Strong cash generation of $4.2 billion from operations, bolstering financial strength and flexibility.
  • 4Agreement to divest the Building Envelope business for $3.8 billion, indicating active portfolio management.
  • 5Strategic deployment of capital with $1.5 billion invested in 20 bolt-on acquisitions, focusing on value creation.
  • 6Continued commitment to shareholder returns via a 5% increase in the full-year dividend per share to 121.0c and an ongoing share buyback program.
  • 7Positive outlook for 2022 with expected favorable demand and pricing, supported by infrastructure investment, despite inflationary headwinds.

Frequently Asked Questions

In 2021, CRH achieved record results, with sales increasing by 12% to $31.0 billion and EBITDA growing by 16% to $5.35 billion. Earnings Per Share (EPS) saw a significant 35% increase (excluding 2020 non-cash impairment charges) to 328.8 cents. The company also reported strong operating cash flow of $4.2 billion and an improved RONA of 12.3%.

CRH made significant moves in portfolio management. The company agreed to divest its Building Envelope business for $3.8 billion, which is expected to close in the first half of 2022. Concurrently, CRH invested $1.5 billion in 20 bolt-on acquisitions, strategically enhancing its capabilities and market reach.

CRH continues to prioritize shareholder returns by increasing its full-year dividend per share by 5% to 121.0c, reflecting its progressive dividend policy. The company also repurchased $0.9 billion of shares in 2021 under its ongoing share buyback program. Strong cash generation and a robust balance sheet provide significant financial flexibility.

CRH anticipates a favorable demand and pricing backdrop for 2022, especially driven by infrastructure spending in the Americas. However, the company expects to navigate an inflationary input cost environment and continued supply chain challenges. Despite these headwinds, CRH's integrated strategy and strong financial position are expected to support further progress.