8-K

CRH PUBLIC LTD CO 8-K Report (Mar 2, 2023)

Filed March 2, 2023For Securities:CRH

Summary

CRH Public Ltd Co reported strong full-year 2022 results, demonstrating resilience and growth despite significant cost inflation. The company achieved a 12% increase in sales to $32.7 billion and a 13% increase in EBITDA to $5.6 billion, with margins improving slightly. Earnings per share (EPS) from continuing operations grew by 14% to $3.50. The company highlighted its integrated solutions strategy as a key driver of performance, supported by disciplined capital allocation. CRH is increasing its full-year dividend by 5% and significantly boosting its share buyback program to $3 billion over the next 12 months. The company also made substantial investments in solutions-focused acquisitions, totaling $3.3 billion. CRH maintains a strong and flexible balance sheet, positioning it well for future value creation. A notable strategic move announced is the recommendation to transition to a primary listing in the US in 2023, citing increased commercial, operational, and acquisition opportunities.

Key Highlights

  • 1Full-year 2022 sales increased by 12% to $32.7 billion, and EBITDA rose by 13% to $5.6 billion.
  • 2Earnings per share (EPS) from continuing operations grew by 14% to $3.50.
  • 3The company is increasing its full-year dividend by 5% and plans to significantly increase its share buyback program to $3 billion over the next 12 months.
  • 4CRH invested $3.3 billion in 29 solutions-focused acquisitions during 2022, including the significant acquisition of Barrette Outdoor Living.
  • 5The company ended 2022 with a strong and flexible balance sheet, evidenced by a Net Debt to EBITDA ratio of 0.9x.
  • 6CRH announced its recommendation to pursue a primary listing in the United States in 2023 to accelerate growth and value creation.
  • 7The company is raising its sustainability ambitions, with validated 1.5°C decarbonisation targets for a 30% absolute carbon emissions reduction by 2030.

Frequently Asked Questions

CRH reported a 12% increase in sales to $32.7 billion and a 13% increase in EBITDA to $5.6 billion for the full year 2022. Earnings per share (EPS) from continuing operations grew by 14% to $3.50. Profit after tax from continuing operations was $2.7 billion.

CRH is committed to returning cash to shareholders. They are recommending a 5% increase in the full-year dividend and plan to substantially increase their share buyback program to $3 billion over the next 12 months. The company also continues to invest in growth through acquisitions.

CRH is recommending a transition to a US primary listing to capitalize on increased commercial, operational, and acquisition opportunities. The company believes this move will further accelerate their integrated solutions strategy and deliver higher profitability, returns, and cash for shareholders, especially given that North America now represents approximately 75% of Group EBITDA.

CRH managed significant cost inflation through a combination of good commercial management, further operational efficiencies, and continued progress on pricing across its businesses. Despite these pressures, the company was able to deliver growth in sales, EBITDA, margin, and EPS.