CRH(CRH)
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CRH(CRH) - 2021 Q4 - Annual Report
2022-03-10 16:00
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CRH(CRH) - 2021 Q4 - Earnings Call Transcript
2022-03-03 15:04
Financial Data and Key Metrics Changes - CRH reported a robust performance with sales up by 12% and profits up by 16% in 2021, with a focus on margin improvement and cash generation [10][8][7] - The company converted 80% of its EBITDA into cash, resulting in a strong balance sheet with net debt at $6.3 billion, or 1.2 times net debt-to-EBITDA [33][31] - A proposed dividend of $0.121 was announced, marking a 5% increase from the previous year [9] Business Line Data and Key Metrics Changes - The Americas Materials business saw sales and EBITDA growth in 2021, with strong backlogs continuing into 2022 [18] - The Building Products division also performed well, achieving profit and margin growth for the ninth consecutive year, driven by the integrated solution strategy [22] - The Europe Materials division reported sales and EBITDA ahead of both 2020 and 2019, indicating recovery and growth post-COVID [28] Market Data and Key Metrics Changes - North America accounts for about 70% of CRH's group EBITDA, with a strong focus on infrastructure and residential markets [12][15] - In Europe, resilient demand was noted in key markets such as France, Germany, the UK, and Ireland, with strong residential spending [23][28] - Central and Eastern European markets, particularly Poland and Romania, benefited from EU stimulus packages, driving demand for residential construction [25] Company Strategy and Development Direction - CRH is focused on repositioning its business to adapt to changing construction demands, emphasizing an integrated solutions model that combines products and services [5][58] - The company aims to maintain a disciplined approach to capital allocation, with a strong pipeline for M&A activity in high-growth markets [34][41] - Sustainability and decarbonization are central to CRH's strategy, with a commitment to reducing CO2 emissions by 25% by 2030 [67][69] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating challenges posed by rising energy costs and geopolitical uncertainties, focusing on cost control and cash management [79][88] - The outlook for 2022 is positive, with strong order books and demand, despite anticipated challenges [79] Other Important Information - CRH divested its Oldcastle BuildingEnvelope division for $3.8 billion, allowing for capital redeployment into core competencies [9][38] - The company has a strong commitment to sustainability, being the largest recycler of building waste in the U.S. and aiming for increased use of recycled materials in construction [71][72] Q&A Session Summary Question: Impact of rising energy costs in 2021 and expectations for 2022 - Energy costs were about 9% to 11% of revenue in 2021, with expectations for a rise towards the higher end in 2022 due to ongoing inflation [90][89] Question: Strategic rationale behind the divestment of the Building Envelope business - The divestment was driven by a lack of M&A opportunities in that space and a focus on core competencies in infrastructure and residential markets [86][84] Question: Intentions for redeploying capital from the Building Envelope divestment - The capital will be redeployed into smaller, fragmented businesses that align with CRH's growth strategy, focusing on creating shareholder value [94][95] Question: Details on achieving the 25% reduction in carbon emissions by 2030 - The reduction will focus on process improvements, innovative materials, and transitioning to less carbon-intensive fuels, with ongoing capital expenditure to support these initiatives [92][93]
CRH(CRH) - 2021 Q4 - Earnings Call Presentation
2022-03-03 14:31
Full Year Results 2021 0 2021 Results Agenda Market Overview Financial Performance & Capital Allocation Strategic Positioning 2022 Outlook Full Year Results 2021 1 Key Messages • Another year of record delivery … margins ahead despite inflationary environment • Strong cash generation … significant financial strength & flexibility • Disciplined capital allocation … $2bn invested in acquisitions & expansionary capex … $1.8bn cash returned to shareholders • Agreed $3.8bn divestment of Building Envelope busines ...
CRH(CRH) - 2020 Q4 - Annual Report
2021-03-12 15:46
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CRH(CRH) - 2020 Q4 - Annual Report
2021-03-11 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 ____________________________ FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A - 16 OR 15D - 16 OF THE SECURITIES EXCHANGE ACT OF 1934 11 March 2021 Commission File No. 001-32846 ____________________________ CRH public limited company (Translation of registrant's name into English) Belgard Castle, Clondalkin, Dublin 22, Ireland. (Address of principal executive offices) ____________________________ Indicate by check mark wheth ...
CRH(CRH) - 2020 Q4 - Earnings Call Presentation
2021-03-05 12:26
GRH 2020 Results Agenda Market Backdrop & Trading Performance Financial Performance Strategy Update Outlook ESG Update Full Year Results 2020 1 Key Messages • Continued growth in profit, margin & cash despite lower activity levels • Robust & flexible balance sheet; Net Debt/EBITDA 1.3x ... significant pipeline of opportunities • Increasing cash returns to shareholders … 25% increase in FY dividend … recommencing share buyback; ~$0.3bn to end June • Well positioned to capitalise on the next growth cycle Full ...
CRH(CRH) - 2020 Q4 - Earnings Call Transcript
2021-03-04 21:21
CRH plc (NYSE:CRH) Q4 2020 Results Earnings Conference Call March 4, 2021 9:00 AM ET Company Participants Albert Manifold - Chief Executive Officer Randy Lake - Head, Americas Materials business Keith Haas - Head, Global Building Products business Senan Murphy - Chief Financial Officer Frank Heisterkamp - Director, Capital Markets and ESG Tom Holmes - Head, Investor Relations Conference Call Participants Robert Gardiner - Davy Gregor Kuglitsch - UBS Arnaud Lehmann - Bank of America Paul Roger - Exane Elodie ...
CRH(CRH) - 2020 Q2 - Earnings Call Transcript
2020-08-20 21:14
Financial Data and Key Metrics Changes - EBITDA for the first half of 2020 was $1.6 billion, a 2% increase compared to the previous year, with a 70 basis points improvement in underlying margin despite a 3% decline in sales [7] - Operating cash flow reached a record $1 billion, significantly supporting the company's strong balance sheet and liquidity position [7][31] - An interim dividend of $0.22 per share was declared, consistent with the previous year, reflecting the financial strength of the group [8] Business Line Data and Key Metrics Changes - In the Americas Materials division, aggregates and cement volumes were stable, while asphalt and readymixed volumes declined compared to the prior year [20] - The Europe Materials division faced significant declines in the UK due to nationwide shutdowns, while Eastern Europe performed well without such restrictions [22][24] - The Building Products division saw a 2% improvement in like-for-like sales, with an 11% increase in like-for-like EBITDA and a 130 basis point improvement in margins [27] Market Data and Key Metrics Changes - Western Europe experienced heavy impacts from COVID-19 restrictions, while construction demand in Eastern Europe and North America remained more resilient [6][12] - U.S. infrastructure works continued, with some states accelerating projects due to lower traffic volumes [13] - The UK market saw a significant decline in sales, with a slower recovery compared to other European markets [24][75] Company Strategy and Development Direction - The company aims to maintain a balanced and vertically integrated portfolio to weather market volatility and support growth [14][40] - Focus on sustainability and reducing the environmental impact of construction materials is a core part of the company's strategy [42] - The company plans to continue refining its business model to deliver superior growth and cash generation for shareholders [41] Management's Comments on Operating Environment and Future Outlook - The management expressed caution regarding the uncertain economic backdrop and limited visibility for the remainder of the year [43][47] - There are concerns about the pace of new projects coming online, but the company remains well-positioned to meet challenges and opportunities [48] - The long-term fundamentals of the business are believed to remain positive despite current uncertainties [48] Other Important Information - The company reduced fixed costs by approximately $200 million and capital expenditure by $200 million in response to the pandemic [16][34] - A strong cash performance was highlighted, with a significant reduction in net debt to $7.8 billion, maintaining a net debt-to-EBITDA ratio of 1.7x [38] Q&A Session Summary Question: Performance of Americas Materials and Building Products businesses - The Americas Materials division showed strong performance due to effective cost management and good pricing discipline, with confidence in Q3 volumes [50][52] - The Building Products division benefited from increased demand in residential RMI, although nonresidential construction faced challenges [56][58] Question: Cash inflow sustainability and cost savings - The company achieved $1 billion in cash inflow due to improved working capital management, with expectations for continued focus on cash generation [63][64] - The $200 million cost savings realized are expected to have some sustainability, although some costs may return as activity levels increase [68] Question: UK market performance and recovery plans - The UK market saw significant declines but is beginning to recover, with strong demand in residential and infrastructure sectors [72][75] - The company plans to maintain operations and support employees during the recovery phase [73] Question: M&A market activity - The M&A market is currently quiet due to travel restrictions, but the company is preparing for future opportunities as the market recovers [76][78]
CRH(CRH) - 2019 Q4 - Annual Report
2020-03-06 16:04
Financial Performance - CRH reported sales of €28.3 billion for 2019, representing a 6% increase from €26.7 billion in 2018[10] - EBITDA for 2019 was €4.2 billion, up 25% from €3.4 billion in 2018[10] - Operating profit increased to €2.6 billion in 2019, a 19% rise compared to €2.2 billion in 2018[10] - Profit after tax for 2019 was €1.6 billion, reflecting a 22% increase from €1.3 billion in 2018[10] - Earnings per share rose to €2.02, a 25% increase from €1.62 in 2018[10] - CRH's 2019 profits amounted to €1.638 billion, an increase from €1.345 billion in 2018[16] - Reported profit after tax was €1.9 billion, down from €2.5 billion in 2018, due to a prior year gain from divestment activity[31] - Operating profit for 2019 was €2.5 billion, up 20% from €2.1 billion in 2018[128] Divisional Performance - The Americas Materials division accounted for 41% of global sales, with sales of €9.0 billion, a 16% growth from 2018[11] - The Europe Materials division contributed 34% of global sales, totaling €8.0 billion, which is a 6% increase from 2018[11] - The Building Products division represented 25% of global sales, with sales remaining stable at €6.2 billion[14] - The Americas Materials Division saw sales increase by 16% to €10.4 billion, with EBITDA rising by 31% to €2.0 billion[31] - Europe Materials Division sales increased by 6% to €8.5 billion in 2019, up from €8.0 billion in 2018[33] - The newly established Building Products Division reported sales of €6.2 billion, maintaining the same level as 2018 but 2% ahead on a like-for-like basis[33] Cash Flow and Capital Management - Operating cash generation for CRH in 2019 was €3.5 billion, with €1.2 billion allocated to maintenance and expansionary capital expenditure, €0.7 billion for acquisitions, and €1.4 billion distributed to shareholders[16] - The Group's operating cash flow increased to €3.5 billion in 2019, compared to €1.9 billion in 2018[129] - Cash returned to shareholders amounted to €1.4 billion in 2019, including €0.6 billion in dividends and €0.8 billion from share buybacks, with a 15% increase in the final dividend recommended[62] - Share buybacks totaled €0.8 billion in 2019, with 27.4 million shares repurchased at an average price of €28.87[130] Debt and Financial Ratios - The company achieved a Net Debt/EBITDA ratio of 1.7x at year-end 2019, reflecting a strong financial position[16] - CRH's year-end Net Debt/EBITDA ratio improved to 1.7x, down from 2.1x in 2018[31] - Net debt decreased to €6.7 billion at year-end 2019, down from €7.0 billion in 2018, with a Net Debt/EBITDA ratio of 1.7x[126] Sustainability Initiatives - CRH has achieved a 25% reduction in specific CO2 emissions compared to 1990 levels, with further ambitious targets set for 2030[18] - The company aims to generate 50% of all product revenue from sustainable products by 2025[33] - The company has committed to reducing CO2 intensity of cement to 520kg CO2/tonne by 2030, representing a 33% reduction from 1990 levels[33] - The company is committed to achieving carbon neutrality along the cement and concrete value chain by 2050, reflecting its long-term sustainability ambitions[97] - The company aims for 50% of revenue from products with enhanced sustainability attributes by 2025, aligning with its sustainability goals[74] Strategic Acquisitions and Divestments - The company continues to reshape its portfolio, divesting from the Europe Distribution business and a 50% interest in My Home Industries Limited[16] - The company completed 62 small and medium-sized bolt-on deals for €0.7 billion in 2019, matching the previous year's total[33] - The Group realized business and asset disposal proceeds of €2.1 billion, primarily from the divestment of the Europe Distribution business for €1.6 billion[135] - The Group divested its Europe Distribution business on October 31, 2019, following a strategic review, impacting reported operations for the year[174] Employee and Community Engagement - The percentage of females in senior management increased to 11% as of December 31, 2019, with a target of 33% by 2030[60] - In 2019, approximately 34,600 employees completed the Code of Business Conduct (CoBC) training, while about 9,800 employees underwent advanced compliance training[111] - The company hosted over 1,400 stakeholder events in 2019 to engage with various stakeholders[106] - The company made donations to various organizations in 2019, focusing on community development, environment, education, and job creation[106] Risk Management and Safety - The company reported a high level of 94% of zero-accident locations, reflecting its commitment to safety culture[60] - The Group managed approximately 3,000 risks through its global Enterprise Risk Management (ERM) framework in 2019[119] - The Risk Committee identified five key themes to improve risk management frameworks and practices[119] Market Outlook and Growth Projections - The company provided an optimistic outlook, projecting a revenue growth of 25% for the next quarter, aiming for $1.875 billion[199] - Market expansion plans include entering three new countries by the end of 2024, targeting a potential market of 5 million users[199] - The company is considering strategic acquisitions to bolster its market position, with a budget of $100 million allocated for potential deals[199]
CRH(CRH) - 2019 Q4 - Earnings Call Transcript
2020-02-28 18:11
CRH plc (NYSE:CRH) Q4 2019 Earnings Conference Call February 28, 2020 3:30 AM ET Company Participants Senan Murphy - Group Finance, Director Randy Lake - President, Americas Materials Onne van der Weijde - President, Europe Materials Keith Haas - President, Building Products David Dillon - President, Global Strategy & Business Development Conference Call Participants Gregor Kuglitsch - UBS Robert Gardiner - Davy Arnaud Lehmann - Bank of America David O'Brien - Goodbody Senan Murphy Good morning, ladies and ...