TIDMCRH
RNS Number : 4439X
CRH PLC
26 April 2023
Trading Update - April 2023
Key Highlights
-- Positive start to the year; Q1 sales and EBITDA ahead
-- Integrated solutions strategy continuing to deliver
-- $0.2bn acquisitions YTD; strong pipeline of opportunities
-- $3bn share buyback underway; total buybacks in H1 to be c.$1bn
-- Continued progress against industry-leading sustainability agenda
-- Strong shareholder support for transition to US primary listing; EGM to be held on 8 June
-- Expect H1 Group sales, EBITDA & margin to be ahead of prior year
Albert Manifold, Chief Executive, said today:
"We had a positive start to the year in a seasonally quiet
trading period. While some adverse weather conditions were
experienced in Q1, sales and EBITDA were ahead, underpinned by the
continued execution of our integrated solutions strategy and
further commercial progress across our markets. Looking ahead,
despite some ongoing macroeconomic uncertainties and an
inflationary cost environment, we expect first-half sales, EBITDA
and margin to be ahead of the prior year period."
Announced Wednesday, 26 April 2023
Trading Overview
In what is a seasonally quiet period for our business, the Group
delivered a positive start to the year with first quarter sales and
EBITDA ahead of the same period last year, driven by the successful
execution of our integrated solutions strategy, resilient
underlying demand, good commercial progress and the strong
contribution from 2022 acquisitions.
Americas Materials Solutions
Americas Materials Solutions sales were 10% ahead of the same
period in 2022, driven by robust pricing which more than offset the
impact of unfavourable weather on activity levels in certain
markets during this seasonally less significant quarter.
Key Solutions Lines in Brief
-- Essential Materials: Q1 sales were 15% ahead driven by good
activity levels in the Northeast and Great Lakes which, together
with double-digit price growth in aggregates and cement, more than
offset lower activity levels due to inclement weather in the West
and South.
-- Road Solutions: Strong price progression and good underlying
demand in the Northeast and Great Lakes resulted in sales 7% ahead
of Q1 2022, more than offsetting the negative impact of adverse
weather in the West and South. Backlogs and bidding activity are
strong, underpinned by significant increases in US infrastructure
funding at both federal and state level.
Americas Building Solutions
First quarter sales were 22% ahead of the same period in 2022,
reflecting good pricing progress, resilient underlying demand, the
positive contribution from prior year acquisitions and the
continued delivery of our integrated solutions strategy.
Key Solutions Lines in Brief
-- Outdoor Living Solutions: A good start to the year with
resilient demand, pricing progress and the contribution from
Barrette Outdoor Living resulted in sales 30% ahead of the first
quarter of 2022.
-- Building & Infrastructure Solutions: Q1 sales were 9%
ahead of a strong prior year comparative as good commercial
management and contributions from 2022 acquisitions offset a slower
start to the construction season due to adverse weather in certain
regions.
Europe Materials Solutions
Like-for-like sales were 6% ahead of the same period in 2022 due
to strong pricing momentum across all products and regions.
Activity levels were impacted by less favourable weather conditions
compared to the same period in 2022. Unfavourable currency
translation effects resulted in total sales 1% behind 2022.
Key Solutions Lines in Brief
-- Essential Materials: Strong pricing actions across all
markets resulted in sales 5% ahead of the first quarter of 2022.
Activity levels were impacted by colder winter conditions across
Europe, lower demand in Ukraine and the Philippines and subdued
residential activity across a number of key markets.
-- Road Solutions: Like-for-like sales for the first quarter
were in line with 2022 as pricing progress in the UK, Ireland and
Poland offset lower activity levels due to adverse weather
conditions.
Europe Building Solutions
First quarter sales were 1% behind the same period in 2022,
reflecting a slower start to the year due to unfavourable weather
and a strong prior year comparative.
Key Solutions Lines in Brief
-- Outdoor Living Solutions: Sales were 6% behind 2022 as
prolonged winter weather impacted demand in key markets, partly
offset by higher pricing.
-- Building & Infrastructure Solutions: Good underlying
demand across our markets resulted in first quarter sales in line
with a strong prior year comparative.
Share Buyback Programme
During the first quarter, the Group continued its share buyback
programme returning a further $0.3 billion of cash to shareholders.
As announced on 2 March 2023, the Group intends to substantially
increase its share buyback programme through the repurchase of up
to $3 billion of shares over the next 12 months. Consistent with
the Group's disciplined approach to capital allocation, the
increase in our share buyback programme demonstrates our confidence
in the outlook for our business and our continued strong cash
generation, while retaining the financial flexibility to invest in
further growth and value creation opportunities for our
shareholders. An initial tranche of the increased share buyback
programme, for a maximum consideration of $750 million, commenced
on 31 March and will be completed no later than 29 June 2023.
Development Activity
The Group has spent $0.2 billion on four acquisitions in the
year to date, the largest of which was the acquisition of
Ulricehamns Betong AB in Sweden by Europe Building Solutions,
expanding our precast concrete solutions offering in an attractive
market.
Sustainability
We remain committed to continuously improving our sustainability
performance by providing integrated sustainable solutions for our
customers, advancing circularity and innovating to create a more
sustainable built environment. We recently announced that the
Science Based Targets initiative (SBTi) validated our
decarbonisation targets in line with its 1.5degC science-based
framework, which equate to a 30% reduction in absolute carbon
emissions by 2030 (from a 2021 base year). This is aligned with our
ambition to be a net-zero business by 2050.
Listing Considerations
On 2 March 2023, CRH announced that following a review of its
listing structure, the Board had come to the conclusion that it is
in the best interests of our business and our shareholders to
pursue a US primary listing, together with US equity index
inclusion as soon as possible.
North America currently represents approximately 75% of Group
EBITDA and is expected to be a key driver of future growth for CRH.
We believe a US primary listing will bring increased commercial,
operational and acquisition opportunities for our business, further
accelerating our successful integrated solutions strategy and
delivering even higher levels of profitability, returns and cash
for our shareholders.
Since the initial announcement, we have engaged extensively with
our shareholders to explain the rationale for our recommendation.
After careful consideration of the feedback received and based on
the strong support indicated by our shareholders, we will now seek
formal approval for the listing change from shareholders at an
Extraordinary General Meeting to be held on 8 June 2023. A notice
convening the meeting, together with an explanation of the
resolutions to be considered, will be included in a Shareholder
Circular which will be distributed to shareholders in advance of
the meeting.
Trading Outlook
Looking ahead to our first-half trading performance, in our
Americas segments we expect robust infrastructure demand, good
activity in key non-residential segments, continued pricing
progress and positive contributions from acquisitions. We
anticipate a more challenging backdrop in Europe driven by
continued inflationary pressures and some slowdown in the new-build
residential sector. Overall, assuming normal seasonal weather
patterns and absent any major dislocations in the macroeconomic
environment, we expect Group sales, EBITDA and margin for the first
half of the year to be ahead of 2022 (H1 2022 EBITDA: $2.2
billion), reflecting the continuing strength and resilience of our
integrated solutions strategy.
CRH will report its interim results for the six months ending 30
June on Thursday, 24 August 2023.
Appendix 1
Q1 sales change Americas Materials Americas Building Europe Materials Europe Building Group
versus 2022 Solutions Solutions Solutions Solutions
Reported Sales +10% +22% -1% -1% +7%
Like-for-like Sales
1 +8% +2% +6% -2% +5%
--------------------- -------------------- -------------------- -------------------- --------------------- ------
CRH plc will host an analysts' conference call at 08:00 BST on
Wednesday, 26 April 2023 to discuss the Trading Update.
Registration for this call can be made here . A recording of the
conference call will be available on the Results &
Presentations page of the CRH website.
Contact CRH at +353 1 404 1000
Albert Manifold Chief Executive
Jim Mintern Chief Financial Officer
Frank Heisterkamp Director of Capital Markets & ESG
Tom Holmes Head of Investor Relations
About CRH
CRH (LSE: CRH, ISE: CRG, NYSE: CRH) is the leading provider of
building materials solutions that build, connect and improve our
world. Employing c.75,800 people at c.3,160 locations in 29
countries, CRH has market leadership positions in both North
America and in Europe. As the essential partner for road and
critical utility infrastructure, commercial building projects and
outdoor living solutions, CRH's unique offering of materials,
products and value-added services helps to deliver a more resilient
and sustainable built environment. A Fortune 500 company, CRH is a
constituent member of the FTSE 100 Index, the EURO STOXX 50 Index,
the ISEQ 20 and the Dow Jones Sustainability Index (DJSI) Europe.
CRH is ranked among sector leaders by Environmental, Social and
Governance (ESG) rating agencies. CRH's American Depositary Shares
are listed on the NYSE. For more information visit www.crh.com
(1) Like-for-like movements exclude the impact of currency
exchange, acquisitions and divestments.
Disclaimer / Forward-Looking Statements
In order to utilise the "Safe Harbor" provisions of the United
States Private Securities Litigation Reform Act of 1995, CRH public
limited company (the "Company"), and its subsidiaries
(collectively, "CRH" or the "Group") is providing the following
cautionary statement.
This document contains statements that are, or may be deemed to
be forward-looking statements with respect to the financial
condition, results of operations, business, viability and future
performance of CRH and certain plans and objectives of CRH,
including but not limited to the statements under: "Key
Highlights", regarding trading expectations for the first half of
the year and transition to US primary listing; the Chief
Executive's quote, regarding expected first-half sales, EBITDA and
margin; "Share Buyback Programme", regarding the timing and amount
of share buybacks; "Sustainability", regarding the Group's
decarbonisation targets and sustainability performance goals;
"Listing Considerations," regarding the execution and anticipated
benefits of a transition to a US primary listing and US equity
index inclusion; and "Trading Outlook", regarding trading
expectations, including expectations for weather conditions, the
macroeconomic environment, sales volumes, EBITDA and margin,
pricing, infrastructure demand and market trends.
These forward-looking statements may generally, but not always,
be identified by the use of words such as "will", "anticipates",
"should", "could", "would", "targets", "aims", "may", "continues",
"expects", "is expected to", "is likely to", "estimates",
"believes", "intends", "plans", "objective", or similar
expressions. These forward-looking statements include all matters
that are not historical facts or matters of fact at the date of
this document.
By their nature, forward-looking statements involve risk and
uncertainty because they relate to events and depend on
circumstances that may or may not occur in the future and reflect
the Company's current expectations and assumptions as to such
future events and circumstances that may not prove accurate.
A number of material factors could cause actual results and
developments to differ materially from those expressed or implied
by these forward-looking statements, certain of which are beyond
our control, and which include, among other factors: economic and
financial conditions, including market turbulence, recessionary
pressures, increased interest rates, inflation, price volatility
and/or labour and materials shortages, in various countries and
regions where we operate; the pace of growth in the overall
construction and building materials sector; demand for
infrastructure, residential and non-residential construction in our
geographic markets; increased competition and its impact on prices;
increases in energy and/or raw materials costs; adverse changes to
laws and regulations, including in relation to climate change and
sustainability; the impact of unfavorable weather, including due to
climate change; our ability to successfully develop and integrate
sustainable solutions into our business and investor and/or
consumer sentiment regarding the importance of sustainable
practices and products; approval or allocation of funding for
infrastructure programmes; adverse political developments in
various countries and regions, including acts of terrorism or war,
such as the ongoing geopolitical conflict in Ukraine; failure to
complete or successfully integrate acquisitions; indirect and
direct effects of the COVID-19 pandemic, and cyber-attacks,
sabotage or other incidents and their direct or indirect effects on
our business. There are important factors, risks and uncertainties
that could cause actual outcomes and results to be materially
different, including risks and uncertainties relating to CRH
described under "Principal Risks and Uncertainties (Risk Factors)"
of the Company's 2022 Annual Report and Form 20 -- F.
You are cautioned not to place undue reliance on any
forward-looking statements. These forward-looking statements are
made as of the date of this document. The Company expressly
disclaims any obligation or undertaking to publicly update or
revise these forward-looking statements other than as required by
applicable law.
The forward-looking statements in this document do not
constitute reports or statements published in compliance with any
of Regulations 6 to 8 of the Transparency (Directive 2004/109/EC)
Regulations 2007 (as amended).
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTFLFIDSFIEFIV
(END) Dow Jones Newswires
April 26, 2023 02:00 ET (06:00 GMT)
Crh (LSE:0A2D)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Crh (LSE:0A2D)
Gráfica de Acción Histórica
De May 2023 a May 2024