CRH plc has reported a 12 per cent YoY increase in sales in 2022 to US$32.7bn. EBITDA over the same period advanced by 13 per cent to US$5.6bn, while the EBITDA margin is up 10bps to 17.2 per cent. Earnings per share (EPS) in 2022 improved by 14 per cent YoY at US$3.50.
Commenting on the results, Albert Manifold, chief executive of CRH, said: “Our 2022 performance reflects the outstanding commitment of our people, the underlying strength and resilience of our business and the continued delivery of our integrated, solutions-focused strategy. Despite significant cost pressures throughout the year, we delivered further improvements in profits, margins and returns. Our strong cash generation together with our relentless focus on disciplined capital allocation has also delivered the strongest balance sheet in our history, providing us with significant opportunities for further growth and value creation going forward.”
Sales in the Americas Materials business were 15 per cent ahead YoY at US$14.3bn, driven primarily by solid price progression across all lines of business that was partly offset by lower volumes impacted by unfavourable weather. EBITDA of US$2.7bn and operating profit of US$1.9bn were six and seven per cent ahead of 2021, respectively, as positive pricing was hit by higher input costs. Like-for-like sales and EBITDA were 12 and five per cent ahead of 2021, respectively.
According to CRH, construction market growth remained positive in 2022, due to strong infrastructure activity, supported by increases in federal, state and local transportation funding. The non-residential market remained resilient, while parts of the new-build residential market faced challenges from rising interest rates and affordability constraints. Canada experienced solid growth in most provinces, however, rising interest rates and inflationary pressures negatively impacted the residential market.
CRH’s cement division delivered sales growth of eight per cent, driven primarily by price realisation of 12 per cent which offset slightly lower volumes compared with 2021. Operating profit was ahead on the back of strong price progression amid an inflationary cost environment. Aggregates volumes declined by one per cent compared to 2021, while aggregates prices increased by 10 per cent. Asphalt volumes were up three per cent YoY, while asphalt prices improved by 20 per cent compared to 2021. Ready-mixed concrete volumes were down six per cent on 2021, while paving and construction revenues were up 25 per cent YoY thanks to a strong order book and good project execution.
The Building Products (Continuing Operations) business delivered sales growth of 26 per cent YoY in 2022 to US$7.8bn, due to strong demand for critical utility infrastructure and outdoor living solutions, while EBITDA advanced by 52 per cent YoY to US$1.5bn. Operating profit was up 59 per cent to US$1.2bn.
Europe Materials benefitted from commercial management initiatives across all countries, according to the company, which, along with a continued focus on cost savings, helped to mitigate significant energy and other input cost inflation, as well as the impact of the conflict in Ukraine. Sales revenue came in at US$10.58bn, on a par with 2021, with strong pricing progress offsetting the impact of lower activity levels. In 2022, EBITDA stood at US$1.4bn, down four per cent YoY due to unfavourable currency translation effects, while operating profit expanded by one per cent YoY to US$824m.
UK and Ireland sales and operating profit were well ahead of 2021 driven by strong pricing and ongoing performance optimisation initiatives. Sales in Europe North (Finland, Germany and Switzerland) were in line with 2021 thanks to price increases which offset lower volumes, and a strong performance in the lime business. Europe West (France, Benelux, Denmark and Spain) delivered sales slightly below 2021 due to softening volumes. Higher raw materials, energy and freight costs in all countries were offset by higher pricing.
Sales in Europe East (Poland, Ukraine, Romania, Hungary, Slovakia, Serbia, and Croatia) were ahead of 2021 due to a strong focus on commercial actions to offset significant cost inflation. Sales in the Philippines ended the year behind 2021 with construction activity impacted by a pre-election ban on construction and high cost inflation which slowed large infrastructure project activity.
