CRH reports 1H sales up 15%

CRH saw its sales for the first half of 2021 increase 15 per cent YoY (10 per cent on a like-for-like basis) to US$14bn.

First-half trading benefitted from a positive underlying backdrop in North America and Europe, said the company in a statement. Like-for-likesales in its Americas Materials segment increased by three per cent compared to 1H20, driven by improved volumes of aggregates, cement and ready-mix concrete, with price progress across all lines of business. In the Europe Materials segment, strong volume growth against a prior-year comparative heavily impacted by COVID-19 restrictions, along with good price momentum in key markets, resulted in like-for-like sales 17 per cent ahead of 2020.  Meanwhile, Building Products benefitted from strong residential repair, maintenance and improvement (RMI) activity in North America. Together with price progress across all platforms, the division delivered like-for-like sales eight per cent ahead of 2020.

EBITDA advanced 25 per cent (19 per cent on a like-for-like basis) to US$2bn, reflecting strong volume growth as well as a continued focus on price improvements and cost rationalisation, which more than offset the impact of cost inflation while the company’s EBITDA margin was up by 120 basis points to 14.2 per cent.

“In Americas Materials, good price progression, focussed cost control and operational efficiencies delivered like-for-like EBITDA six per cent ahead of 2020. Like-for-like EBITDA in Europe Materials was 52 per cent ahead of 2020, primarily reflecting the strong volume performance in our key markets further supported by price progress and cost control. Building Products delivered like-for-like EBITDA 12 per cent ahead of 2020, due to good commercial management, profit improvement initiatives and cost discipline,” according to CRH.

''I am pleased to report a good first half as the strength and resilience of our business model once again delivers superior performance for CRH. Our integrated and solutions-focussed approach leaves us uniquely positioned for the changing needs of construction, while our continued strong cash generation provides us with the flexibility to invest in future growth opportunities for our business. Based on current trading conditions and the positive momentum that we see across our markets, we expect second-half Group EBITDA to be ahead of a record prior year,” said CRH CEO, Albert Manifold.

Trading outlook
For the second half of the year, the company expects that its Americas Materials Division is expected to continue to benefit from an improving economic backdrop and good underlying demand. It is further encouraged by the progress being made in relation to infrastructure funding negotiations in the USA.

In Europe Materials, it forecasts solid construction demand in its key markets against a backdrop of a strong prior year comparative.

Meanwhile, its Building Products Division is expected to continue to benefit from positive residential demand, with early signs of recovery in non-residential activity. Assuming normal weather patterns for the remainder of the construction season and against a backdrop of input cost inflation, CRH expects second-half group EBITDA to be ahead of a record prior year comparative.