8-K

CRH PUBLIC LTD CO 8-K Report (Apr 26, 2023)

Filed April 26, 2023For Securities:CRH

Summary

CRH Public Limited Company (CRH) has released a trading update for April 2023, indicating a positive start to the year despite seasonal quietness and some adverse weather conditions. The company reported that first-quarter sales and EBITDA are ahead of the prior year, driven by its integrated solutions strategy and resilient demand. This performance is expected to continue, with projections for the first half of the year showing sales, EBITDA, and margins to be ahead of the previous year. A significant development highlighted is the company's proposed transition to a primary listing in the United States, with shareholder approval to be sought at an Extraordinary General Meeting on June 8, 2023. This strategic move is supported by strong shareholder feedback and is expected to unlock further commercial, operational, and acquisition opportunities, given that North America represents approximately 75% of CRH's EBITDA. Additionally, CRH is undertaking a substantial share buyback program, intending to repurchase up to $3 billion in shares over the next 12 months, demonstrating confidence in its financial outlook and cash generation capabilities.

Key Highlights

  • 1Q1 2023 sales and EBITDA were ahead of the prior year, supported by the integrated solutions strategy and resilient demand.
  • 2The company anticipates first-half 2023 sales, EBITDA, and margins to exceed the prior year.
  • 3CRH is proposing a transition to a primary listing in the United States, with an EGM scheduled for June 8, 2023, to seek shareholder approval.
  • 4A significant share buyback program is underway, with plans to repurchase up to $3 billion in shares over the next 12 months, and approximately $1 billion expected in H1.
  • 5Year-to-date acquisitions totaled $0.2 billion, with a strong pipeline of future opportunities.
  • 6Progress continues on CRH's sustainability agenda, including SBTi validation for decarbonisation targets.
  • 7Performance in the Americas segments showed strong sales growth (Materials +10%, Building +22%), while Europe experienced mixed results (Materials +6% LFL, Building -1%).

Frequently Asked Questions

CRH reported a positive start to the year, with first-quarter sales and EBITDA ahead of the same period last year. This performance was driven by the successful execution of their integrated solutions strategy, resilient underlying demand, and good commercial progress.

The proposed move to a US primary listing is based on North America representing approximately 75% of Group EBITDA and being a key driver of future growth. CRH believes this listing will provide increased commercial, operational, and acquisition opportunities, further accelerating their integrated solutions strategy and enhancing shareholder value.

CRH expects first-half Group sales, EBITDA, and margins to be ahead of the prior year. This outlook is supported by robust infrastructure demand and continued pricing progress in the Americas, though a more challenging backdrop is anticipated in Europe due to inflationary pressures and a slowdown in the new-build residential sector.

CRH is actively returning capital to shareholders through a significant share buyback program. The company intends to repurchase up to $3 billion in shares over the next 12 months, with an initial tranche of up to $750 million expected to be completed by June 29, 2023. Approximately $1 billion in total buybacks is anticipated for the first half of the year.