CRH sees sales advance 13% YoY in 9M22

In the opening nine months of 2022, CRH plc has seen its sales advance by 13 per cent YoY to US$24.4bn. Over the same period, EBITDA has improved by 14 per cent to US$4.2bn, while the EBITDA margin is up 10bps to 17.1 per cent.

According to the company, the positive momentum experienced in the first half of the year continued into the third quarter, driven by resilient demand, strong pricing and continued delivery from its integrated solutions strategy. Third quarter sales in Americas Materials were underpinned by positive pricing initiatives across all lines of business, offsetting lower activity levels which were impacted by unfavourable weather in certain markets.

Europe Materials experienced softer activity levels in the 3Q22 amid a challenging energy cost backdrop. While adverse currency headwinds impacted overall sales, like-for-like sales were well ahead of 2021 driven by strong commercial management. Building Products delivered strong growth in the third quarter led by good demand in utility infrastructure and outdoor living solutions, as well as strong contributions from recent acquisitions.

Commenting on the results, Albert Manifold, chief executive at CRH, said, “Notwithstanding a challenging and volatile cost environment, I am pleased to report further growth in sales, EBITDA and margin during the first nine months of the year. This performance reflects the resilience of our business and the benefits of our integrated and sustainable solutions strategy. The strength of our balance sheet combined with our relentless focus on disciplined capital allocation provides further opportunities to create value for all our stakeholders. Looking ahead to the remainder of the year we expect to deliver full-year EBITDA of approximately US$5.5 billion representing another year of progress for the group."

Over the nine-month period, the company reported cement sales 12 per cent ahead of the same period in 2021 with prices also advancing by 12 per cent, helping to offset lower demand due to poor weather in some regions and lower activity levels in Canada. Aggregates volumes were ahead by one per cent YoY, while asphalt volumes saw a six per cent improvement on the 9M21. Ready-mixed concrete volumes for the nine months were four per cent lower than the same period of 2021, despite a strong performance in the South supported by good residential demand and improved third quarter activity levels in the Northeast and Great Lakes regions.

Looking ahead, CRH expects to end 2022 with full-year depreciation and amortisation broadly in line with 2021 (2021: US$1.7bn), while the impact of divestments and non-current set disposals from continuing operations is forecast to be behind 2021 (2021: US$116m gain). The group’s share of profits from equity accounted entities is also expected to be behind prior year (2021: US$55 million) mainly due to the performance of the group’s associate in China where activity levels were impacted by ongoing COVID-19 restrictions. Bearing all this is mind, the group expects full-year profit before tax to be ahead of 2021 (2021: US$3.1bn).