CRH releases 1Q21 trading update

CRH has released a trading update ahead of its annual general meeting, which takes place tomorrow. The company has seen sales rise three per cent on a like-for-like basis in the first quarter of 2021, on the back of strong underlying demand and pricing progress across its key markets.

"We had a positive start to the year in a seasonally quiet period for our business with good underlying demand and pricing progress across our key markets. While near-term uncertainties remain, we expect first-half profitability to be well ahead of the prior year period which experienced a heavily disrupted second quarter due to COVID-19. As we look ahead to the second half of the year, we expect further normalisation in our markets as the health situation continues to improve," said Albert Manifold, CEO.

Americas Materials
Sales for its Americas Materials operations were down one per cent LfL on the 1Q20, as the impact of harsh winter weather conditions on volumes during February was partly offset by strong commercial management. Cement volumes increased five per cent LfL in the first quarter of 2021, with strong demand in the segment’s western region. Prices were four per cent ahead due to good momentum in both the US and Canada.

Europe Materials
Its Europe Materials segment saw a marginal improvement of one per cent LfL in sales for the 1Q21, as challenging weather at the start of the year was offset by improved trading in March. Sales in the UK were ahead with strong volumes across most lines of business. France also reported an increase in cement volumes, but adverse weather impacted activity levels in Finland and Germany while COVID-19 restrictions in Ireland resulted in lower cement volumes.

Like-for-like sales in eastern Europe were behind 2020 as harsh weather impacted volumes in Poland, although this was partly offset by resilient demand in the North Danube and Serbia. Overall cement pricing was ahead in the region.

Asia saw strong cement volumes in the 1Q21 and lower prices, which overall resulted in increased sales compared to 2020.