2021 was a year of growth for CRH with positive underlying momentum in North America and Europe resulting in good demand in both regions. Group sales of US$31bn (2020: US$27.6bn) were 12 per cent ahead of 2020 and eight per cent ahead on a like-for-like(LfL) basis.
Albert Manifold, CRH CEO, said: "Our 2021 performance reflects the outstanding commitment and resilience of our people as well as the benefits of our integrated, customer-focused business strategy."
Americas Materials benefitted from increased construction activity in 2021 due to strong residential demand in North America. Total sales in 2021 increased by 10 per cent with LfL sales six per cent ahead, driven by positive volume growth and pricing progression.
Europe Materials received good volume growth and pricing progress against a prior year comparative which was heavily impacted by pandemic restrictions resulted in total and LfL sales ahead by 16 and 11 per cent, respectively.
Building products delivered sales growth of 11 per cent with LfL sales five per cent up due to strong demand for residential construction and a moderate recovery in the non-residential sector.
EBITDA of US$5.35bn was 16 per cent ahead (2020: US$4.6bn), reflecting the benefits of CRH’s integrated solutions strategy with strong demand growth and continued commercial discipline. On a LfL basis, EBITDA advanced 11 per cent of 2020.
Americas Materials recorded solid volumes, pricing progression and good operating performance drove total and LfL EBITDA up eight and seven per cent, respectively, offsetting the impacts of higher input costs and inclement weather.
Europe Materials delivered total EBITDA 34 per cent ahead of 2020, 22 per cent ahead on a LfL basis, driven by good volume growth, price increases in all products and strong fixed cost control despite cost inflation headwinds.
In Building Products, ongoing business-improvement initiatives, good commercial management, procurement savings and cost control resulted in margin expansion on increased sales with total EBITDA 16 per cent ahead of 2020 and eight per cent ahead on a LfL basis.
Profit after tax was significantly ahead of 2020 at US$2.6bn (2020: US$1.2 bn) driven by a strong trading performance and the non-recurrence of non-cash impairment charges and one-off restructuring costs in the prior year.
Outlook
CRH expect the underlying demand and pricing backdrop to remain favourable in 2022 albeit against an inflationary input cost environment and continued supply chain challenges. The Americas Materials Division benefits from continuing favourable economic conditions and strong market positions. Federal funding for infrastructure is underpinned by the passing of the US$1.2trn infrastructure package by the US Congress, while the residential market is expected to continue to grow driven by robust demand.
The backdrop in Europe is expected to be positive with continued growth in the company’s key markets. The Europe Materials Division continues to benefit from strong market positions in growing economies in eastern Europe and attractive markets in western Europe. Although cost inflation headwinds are anticipated to continue in the near-term, we expect to deliver further progress in 2022 supported by good demand and commercial discipline. CRH expects the Building Products Division to deliver further growth supported by good commercial management, increased activity and continued cost saving initiatives.
