CRH(US:CRH)2020-03-06 16:04Financial 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]