CRH posts 14% YoY increase in sales in 1H22

CRH posts 14% YoY increase in sales in 1H22
25 August 2022

CRH has reported a 14 per cent YoY increase in sales to US$15bn in the first half of 2022. EBITDA over the same period has improved by 21 per cent to US$2.2bn, with the EBITDA margin gaining 90bps to 14.7 per cent. Earnings per share have advanced by 36 per cent to US$1.21. First-half profit after tax came in at US$0.9bn, up 29 per cent YoY

“CRH has delivered another strong performance with further growth in sales, EBITDA and margin despite a challenging and volatile cost environment. This performance reflects the continued execution of our integrated and sustainable solutions strategy. Looking ahead, despite some continued cost headwinds, the strength of our balance sheet and resilience of our business leaves us well positioned to deliver superior value for all our stakeholders,” said Albert Manifold, CEO of CRH.  

Americas Materials
Despite challenging weather conditions, CRH’s Americas Materials business reported sales revenue of US$5.5bn, up 17 per cent YoY, with EBITDA of US$0.8bn, up 12 per cent on the 1H21. Operating profit was ahead by 16 per cent at US$0.4bn. According to the company, this was mainly driven by strong commercial management across all lines of business. Higher prices coupled with operating efficiencies helped offset the inflationary input cost environment. 

Aggregates volumes were one per cent down on the 1H21, mainly due to adverse weather conditions. Asphalt volumes were 10 per cent ahead of the 1H21 on the back of robust demand and a backlog in the Great Lakes and South regions. Although ready-mixed concrete (RMC) volumes enjoyed strong demand in the South, this was more than offset by weather-related challenges in the West and Northeast region, causing volumes to dip six per cent YoY in the 1H22. The cement business delivered a strong performance with sales 15 per cent ahead of the 1H21. 

Building Products (continuing operations)
Building Products saw sales growth of 23 per cent YoY in the 1H22 reaching US$4.02bn. EBITDA advanced by 54 per cent over the same period to US$0.78bn, while operating profit was up 66 per cent to US$0.64bn. EBITDA reportedly benefitted from recent acquisitions, most notably National Pipe & Plastics, which was acquired in September 2021. 

Sales in Architectural Products were ahead of the first half of 2021 reflecting price increases, good residential RMI demand as homeowners continued to invest in their outdoor living spaces, and positive contributions from recent acquisitions. Sales and operating profit were ahead in the European businesses mainly due to improved demand in Poland and Germany. Overall operating profit was up compared to the 1H21 despite significant cost inflation, particularly in materials and haulage costs. 

The Infrastructure Products business recorded strong operating profit growth, particularly in North America, due to continued performance improvement measures, commercial discipline and focussed cost control. Meanwhile, Construction Accessories saw its sales ahead in all regions as strong momentum from 2021 continued into the first half of 2022. 

Europe Materials
Europe Materials results were hit by currency exchange headwinds in the 1H22, putting sales five per cent ahead YoY at US$5.4bn, while EBITDA improved by four per cent to US$0.6bn, driven by price increases across all products. Operating profit in the 1H22 came in 17 per cent up YoY at US$0.34bn. 

UK and Ireland sales were ahead YoY with price increases seen across all areas. Europe North (Finland, Germany and Switzerland) saw increased activity levels in the 1H22, resulting in higher sales, while Europe West (France, Benelux, Denmark and Spain) also saw an increase in sales, primarily driven by France and Benelux, which saw resilient demand and strong price increases across the board. 

Europe East (Poland, Ukraine, Romania, Hungary, Slovakia, Serbia and Croatia) benefitted from milder winter weather compared to the previous year which, combined with a robust demand environment, resulted in strong activity levels in most markets, particularly Poland and Romania. Following a strong start to the year, activity levels in Ukraine were negatively impacted by the ongoing conflict in the country. In Asia sales in the Philippines were behind 2021, impacted by a pre-election ban on construction and a post-election transition of government. 

Investments and divestments
In the 1H22 the group invested US$0.9bn in 14 acquisitions and a further US$0.2bn on expansionary capital expenditure projects. On the divestment front, the group completed six transactions and realised total business and asset disposal proceeds of US$3.6bn, primarily relating to the proceeds from the Building Envelope divestment. 

Published under Cement News