8-K

CRH PUBLIC LTD CO 8-K Report (Apr 20, 2022)

Filed April 20, 2022For Securities:CRH

Summary

CRH Public Limited Company (CRH) reported a strong start to 2022 with its Q1 trading update, exceeding prior year performance in sales, EBITDA, and margins. This positive momentum is attributed to good underlying demand and the successful execution of their integrated solutions strategy across all divisions. The company also highlighted active capital allocation, with $0.6 billion spent on acquisitions year-to-date and plans to complete a $0.6 billion share buyback program by the end of June. Looking ahead, CRH anticipates first-half 2022 sales, EBITDA, and margins to remain ahead of the prior year, provided no significant macroeconomic disruptions occur. The company is actively pursuing growth through acquisitions, with a strong pipeline of opportunities, and is committed to returning capital to shareholders via its ongoing buyback program. Despite global uncertainties, including the conflict in Ukraine and COVID-19 impacts, CRH's demand backdrop remains favorable, positioning them well for continued growth.

Key Highlights

  • 1Q1 2022 sales, EBITDA, and margins were ahead of the prior year, driven by strong underlying demand and the integrated solutions strategy.
  • 2Year-to-date acquisition spend reached $0.6 billion, with a robust pipeline of future opportunities.
  • 3A share buyback program of $0.6 billion is planned for completion by the end of June 2022.
  • 4First-half 2022 sales, EBITDA, and margins are projected to be ahead of the prior year, assuming stable macroeconomic conditions.
  • 5Americas Materials sales increased by 13%, Europe Materials sales by 11%, and Building Products sales by 22% in Q1.
  • 6CRH has reaffirmed its commitment to sustainability, targeting a 25% reduction in absolute Group-wide carbon emissions by 2030 and aiming for net zero by 2050.

Frequently Asked Questions

CRH reported that its Q1 2022 sales, EBITDA, and margins were ahead of the same period in 2021. This performance was supported by improved activity levels and the execution of its integrated solutions strategy.

Assuming normal seasonal weather patterns and the absence of major macroeconomic dislocations, CRH expects Group sales, EBITDA, and margin for the first half of 2022 to be ahead of 2021. They anticipate continued positive demand in North America and expect like-for-like EBITDA in Europe Materials to be ahead of the prior year despite energy cost volatility and the conflict in Ukraine.

CRH spent approximately $0.6 billion on 11 acquisitions year-to-date, including Rinker Materials and Calstone Company. They also plan to complete a further $0.3 billion in share buybacks by June 27, 2022, bringing the total for the first six months of 2022 to $0.6 billion. The divestment of their Building Envelope business is also expected to close in Q2 2022.

Sales growth is driven by a combination of factors including good underlying demand, the continued execution of their integrated solutions strategy, improved activity levels, strong commercial management, and strategic acquisitions. Pricing increases across various product lines also contribute to sales growth.