CRH PLC Announces 2021 Full Year Results

DUBLIN, IRELAND / ACCESSWIRE / March 3, 2022 /

Key Highlights

• Another year of record delivery driven by our integrated solutions strategy
• Good underlying demand, strong profit growth and further margin improvement
• Continued strong cash generation; underpinning financial strength and flexibility
• Agreement reached on $3.8bn divestment of Building Envelope business
• $1.5bn invested across 20 bolt-on acquisitions; disciplined and value-focused
• Strong pipeline of opportunities for further growth and value creation
• Continued dividend delivery; full-year dividend per share up 5% to 121.0c
• Share buyback programme ongoing; $0.9bn completed in 2021

Albert Manifold, Chief Executive, said today:

"Our 2021 performance reflects the outstanding commitment and resilience of our people as well as the benefits of our integrated, customer-focused business strategy. Despite an inflationary input cost environment, we expanded our margins and delivered good growth in profits, returns and cash generation. This further underpins our strong and flexible balance sheet, providing us with significant opportunities for future growth and value creation. While the demand backdrop remains favourable across our markets, there are a number of challenges and uncertainties which we must continue to manage carefully as we look to deliver further value for our shareholders in the year ahead."

Announced Thursday, 3 March 2022

¹EPS increase of 35% excludes the impact of 2020 non-cash impairment charges.

2021 Full Year Results

Health & Safety

The health and safety of our people is our number one priority as many of our markets continue to be affected by the impact of COVID-19. Our approach to workplace safety is uncompromising and we are committed to providing a safe working environment for our employees, contractors and customers, enabling them to carry out their activities in accordance with the various health and safety protocols currently in place across our markets.

Trading Overview

2021 was another year of growth for CRH with positive underlying momentum in North America and Europe resulting in good demand in both regions. Group sales of $31.0 billion (2020: $27.6 billion) were 12% ahead of 2020 and 8% ahead on a like-for-like basis².

• Americas Materials benefited from increased construction activity in 2021 due to strong residential demand in North America. Total sales in 2021 increased by 10% with like-for-like sales 6% ahead driven by positive volume growth and pricing progression.
• In Europe Materials, good volume growth and pricing progress against a prior year comparative which was heavily impacted by pandemic restrictions resulted in total and like-for-like sales 16% and 11% ahead respectively.
• Building Products delivered sales growth of 11% with like-for-like sales 5% ahead due to strong demand for residential construction and a moderate recovery in the non-residential sector.

EBITDA of $5.35 billion was 16% ahead (2020: $4.6 billion) reflecting the benefits of our integrated solutions strategy with strong demand growth and continued commercial discipline. On a like-for-like basis, EBITDA was 11% ahead of 2020.

• In Americas Materials, solid volumes, pricing progression and good operating performance drove total and like-for-like EBITDAup 8% and 7% respectively, offsetting the impacts of higher input costs and inclement weather.
• Europe Materials delivered total EBITDA 34% ahead of 2020, 22% ahead on a like-for-like basis, driven by good volume growth, price increases in all products and strong fixed cost control despite cost inflation headwinds.
• In Building Products, ongoing business-improvement initiatives, good commercial management, procurement savings and cost control resulted in margin expansion on increased sales with total EBITDA 16% ahead of 2020 and 8% ahead on a like-for-like basis.

Profit after tax was significantly ahead of 2020 at $2.6 billion (2020: $1.2 billion) driven by a strong trading performance and the non-recurrence of non-cash impairment charges and one-off restructuring costs in the prior year.

Note 2 on page 15 analyses the key components of the 2021 performance.

Sustainability

Sustainability is deeply embedded in all aspects of our business and we recognise the importance of our role in the delivery of a more resilient built environment. Through our integrated solutions strategy we are uniquely positioned to accelerate the transition towards more sustainable building practices across the value chain. The Group remains fully committed to achieving our ambition of carbon neutrality by 2050. In August 2021 we accelerated our previous decarbonisation roadmap, bringing forward our 2030 target to 2025. In addition, in early 2022 we adopted a new group-wide target representing a 25% reduction in absolute carbon emissions³ by 2030 (on a 2020 baseline), as validated by the Science Based Targets Initiative (SBTi).

Trading Outlook

We expect the underlying demand and pricing backdrop to remain favourable in 2022 albeit against an inflationary input cost environment and continued supply chain challenges. Our Americas Materials Division benefits from continuing favourable economic conditions and strong market positions. Federal funding for infrastructure is underpinned by the passing of the $1.2 trillion infrastructure package by the US Congress, while the residential market is expected to continue to grow driven by robust demand. The backdrop in Europe is expected to be positive with continued growth in our key markets. In our Europe Materials Division, we continue to benefit from strong market positions in growing economies in Eastern Europe and attractive markets in Western Europe. Although cost inflation headwinds are anticipated to continue in the near-term, we expect to deliver further progress in 2022 supported by good demand and commercial discipline. We expect our Building Products Division to deliver further growth supported by good commercial management, increased activity and continued cost saving initiatives. Although there are a number of challenges and uncertainties across our markets, CRH's uniquely integrated and value-added solutions strategy, together with a strong and flexible balance sheet, leaves us well positioned for another year of progress.

² See pages 28 to 33 for glossary of alternative performance measures (including EBITDA, like-for-like (LFL)/organic, RONA, Net Debt/EBITDA, EBITDA/Net Interest Cover and pre-impairment measures (earnings per share and effective tax rate)) used throughout this report. Operating Cash Flow is net cash inflow from operating activities as reported in the Consolidated Statement of Cash Flows on page 13.

³ Scope 1 and scope 2 emissions.

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SOURCE: CRH PLC