CRH 2016 gross profits up 69%

CRH 2016 gross profits up 69%
01 March 2017

CRH released its 2016 results with its gross profits at EUR1741m up by 69 per cent on its EUR1033m in 2015. Operating profits were also up EUR2027m, as against EUR1277 a year earlier.

CRH announced that margins and revenues were ahead in all business divisions and sales of building materials amounted to EUR27.1bn, 15 per cent ahead of 2015.

Meanwhile, EBITDA was up 41 per cent to EUR3.1bn, and EBITDA margin was 11.5 per cent up from 9.4 per cent in 2015. The group recorded cash inflow of EUR2.3bn from operating activities.

CRH also announced return on net assets of 9.7 per cent up from 7.6 per cent in 2015m, while year-end net debt fell by EUR1.3bn to EUR5.3bn.

Albert Manifold, CEO, said: "2016 was a year of significant profit growth for CRH, with margins and returns ahead of last year in every division. We benefited from positive momentum in the Americas, and also in Europe, particularly in the Northern and Eastern regions where we operate.

"The focus on cash management resulted in our year-end debt metrics being ahead of target and below normalised levels. In addition to organic growth, we continue to develop CRH through acquisitions, having completed eight transactions already this year. With our balanced portfolio of businesses, CRH is well positioned to capitalise on the ongoing economic recovery and we see continued growth for the group in 2017."

Acquisitions and disposals
CRH reported that 2017 year-to-date acquisition and investment spend of approximately EUR500m reflecting eight transactions. Development activity in the first two months of 2017 comprised seven acquisitions spread across each of our four Americas Materials divisions (North, South, Central and West) and also CRH Canada. In addition, one small investment transaction was completed by the Americas Products Division.

Furthermore, the group has reached agreement to divest six businesses which will result in total proceeds of approximately EUR400m.  In Germany, the largest disposal transaction so far this year, CRH has reached agreement to divest one cement plant and one grinding station - these assets formed part of the LH Assets acquisition in 2015. The transaction is subject to approval by the German Competition Authority (Bundeskartellamt).

Published under Cement News

Tagged Under: business results CRH Ireland