CRH reports 8% sales growth in 9M23

CRH reports 8% sales growth in 9M23
21 November 2023

CRH has posted sales of US$26.3bn for the first nine months of 2023, up eight per cent on the same period a year earlier. EBITDA in the 9M23 has come in at US$4.8bn, marking a 14 per cent YoY advance, while the EBITDA margin has expanded by 100bps to 18.1 per cent. According to the company, the positive momentum seen in the first half of the year continued into the third quarter, underpinned by strong commercial progress and positive underlying demand across key end-use markets. 

Sales in Americas Materials Solutions in the 9M23 were ahead YoY by seven per cent, with 3Q23 sales driven by strong pricing progress across all lines of business, which offset lower activity levels resulting from unfavourable weather in certain regions. Nine-month EBITDA was 11 per cent ahead of the prior year, supported by good pricing and strong operational efficiencies offsetting continued cost pressures. Aggregates volumes in the 9M23 slipped by two per cent YoY although demand in the Great Lakes and Northeast regions remained strong. Sales in the paving and construction services business in the 9M23 were five per cent ahead YoY due to good backlog execution. 

Sales in Americas Building Solutions were also ahead YoY, up 15 per cent in the 9M23, supported by increased pricing and contribution from acquisitions. Sales growth, production efficiencies and a continued focus on cost control resulted in EBITDA being 23 per cent up YoY. The outdoor living solutions business reported a 20 per cent YoY advance in sales, while building and infrastructure solutions reported a seven per cent YoY increase in sales, mainly attributed to positive underlying demand in the water, telecommunications and energy markets. 

Europe Materials Solutions delivered positive sales growth in the 9M23 with a six per cent YoY expansion. Nine-month EBITDA was 20 per cent ahead of 9M22, as a result of strong commercial management, operational excellence initiatives and cost saving actions which mitigated the impact of cost inflation, according to the company. Essential materials reported nine per cent growth in sales YoY in the 9M23, while road solutions saw a three per cent rise in sales, despite adverse weather in the 1H23 and subdued demand in the UK and Finland. 

Europe Building Solutions’ sales continued to be impacted by subdued new-build residential activity but managed to record a one per cent uptick in the 9M23. Infrastructure and non-residential demand was resilient, but slower residential markets resulted in EBITDA coming in 16 per cent down on the 9M22.  

The group completed sixteen acquisitions in the 9M23 for a total consideration of US$0.7bn, the largest of which was the acquisition by Americas Building Solutions of Hydro International, a leading provider of stormwater products, wastewater treatment products, wastewater services, and data solutions.

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