CRH FY17 results see sales of EUR27.6bn

CRH has released its full year 2017 results and reports sales of EUR27.6 bn, up two per cent on 2016 on a like-for-like basis. EBITDA was up six per cent to EUR3.3bn from EUR3.14bn in 2016. The EBITDA margin rose by  12 per cent, up from 11.5 per cent in 2016.

All divisions posted LFL EBITDA growth: with Americas Products (+12 per cent), Americas Materials (+4 per cent), Americas Products (+5 per cent), Europe Heaviside (+6 per cent), Europe Lightside (+5 per cent) and Europe Distribution (+1 per cent).

CRH had a cash inflow of EUR2.2bn from its operating activities. Return on Net Assets was 10.6 per cent, up from 9.7 per cent in 2016. Net debt/EBITDA stood at 1.8x after EUR1.7bn net development activity.

"The UK cement and lime operations maintained stable pricing against a backdrop of modest economic growth, while improvements in production processes and synergies, achieved through network optimisation, further contributed to operating profit growth," said CRH.

"In Ireland, both sales and operating profit were ahead of 2016 mainly due to market recovery, particularly in the residential and commercial sectors, and the resulting growth in cement, aggregates and readymixed concrete volumes; positive trends on pricing across key products also contributed to sales and operating profit."

Albert Manifold, Chief Executive, said: "2017 was a year of continued profit growth for CRH. We benefited from increases in underlying demand in the Americas and positive momentum in Europe, and with focus on performance improvement and operational delivery, margins and returns were ahead of last year in our American and European Divisions.

"Supported by strong operational cash generation, we continued to deliver value through efficient capital management. With a balanced portfolio of businesses CRH is well positioned to capitalise on ongoing economic recovery and our focus remains on consolidating and building upon the gains made in 2017. Against this backdrop, we believe that 2018 will be a year of continued growth for the Group."

CRH increased the expected synergies from the Ash Grove acquisition from US$80m to US$100m+
and expect a further US$20m from the Florida assets purchased, reports finanical analysts Bernstein. EUR1.3bn was spent on 21 acquisitions and one investment. CRH's Materials Division completed the largest 2017 acquisition at the end of November with the acquisition of Suwannee American Cement together with certain other materials assets in Florida. The total assets acquired consist of a 1Mt cement plant in north central Florida, 18 ready-mixed concrete plants, an aggregates quarry, two block plants and nine gunite facilities.

CRH's outlook was positive for Americas and Europe with stabilisation expected in the Philippines, Bernstein commented.

No quantitative guidance was given but 2018 is expected to show "improved performance and continued growth," said CRH.