UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM
6-K
REPORT
OF FOREIGN PRIVATE ISSUER
PURSUANT
TO RULE 13A - 16 OR 15D - 16 OF
THE
SECURITIES EXCHANGE ACT OF 1934
(23
November 2021)
Commission File No.
001-32846
____________________________
CRH
public limited company
(Translation
of registrant's name into English)
____________________________
Belgard
Castle, Clondalkin,
Dublin
22, Ireland.
(Address
of principal executive offices)
____________________________
Indicate by check
mark whether the registrant files or will file annual
reports
under
cover of Form 20-F or Form 40-F:
Form
20-F X Form
40-F___
Indicate by check
mark if the registrant is submitting the Form 6-K in paper as
permitted by
Regulation S-T Rule
101(b)(1):_________
Indicate by check
mark if the registrant is submitting the Form 6-K in paper as
permitted by
Regulation S-T Rule
101(b)(7):________
Enclosure: Trading
Update – November 2021
Trading
Update - November 2021
Key
Highlights
● Positive nine-month performance; sales +11% ahead
of prior year
● Good underlying demand & continued pricing
progress across key markets
● Strong growth in profitability and further margin
expansion
Nine
months ended 30
September
2021
Change
Sales
$22.8bn
+11%
EBITDA
$3.9bn
+15%
EBITDA
Margin
17.1%
+50bps
● Performance supported by integrated solutions
model
● Robust cash generation & financial discipline;
expect year-end net debt/EBITDA of c.1.2x
●
Year-to-date
acquisition spend $1.4bn; strong pipeline of
opportunities
● Share buyback programme ongoing; $0.8bn completed
year-to-date
●
Expect
full-year EBITDA to be in excess of $5.25bn; well ahead
of prior year
Albert
Manifold, Chief Executive, said today:
CRH continues to perform well with good underlying demand and
pricing progress across our key markets. Our uniquely integrated
and solutions-focused business model has supported further margin
expansion across our businesses, while our strong cash generation
and disciplined approach to capital allocation provides further
opportunities to create value for all of our stakeholders. Looking
ahead to the remainder of the year, we expect to deliver another
record performance for the Group, with full-year EBITDA in excess
of $5.25 billion.
Announced
Tuesday, 23 November 2021
Health
& Safety
The
health and safety of our people remains our top priority as many of
our markets continue to be affected by COVID-19. Our focus is to
ensure that we continue to provide a safe working environment for
our employees, contractors and customers, enabling them to carry
out their activities in accordance with the various health and
safety protocols currently in place across our
markets.
Trading
Summary
Cumulative
nine-month sales to the end of September amounted to $22.8 billion,
an increase of 11% compared with the corresponding period in 2020
and 7% ahead on a like-for-like basis. First-half growth moderated
in the third quarter as easing pandemic related restrictions in the
third quarter of 2020 resulted in a strong prior year
comparative.
Third
quarter sales remained ahead of prior year across all divisions,
with good demand in key markets. Americas Materials was primarily
driven by improved pricing as volume growth was impacted by
inclement weather, while Europe Materials continued to benefit from
improved activity levels in Eastern Europe and the United Kingdom
(UK). Building Products delivered further growth in the third
quarter against a strong prior year comparative.
|
Sales (like-for-like1)
change versus 2020
|
Americas Materials
|
Europe Materials
|
Building Products
|
Group
|
|
First
half (H1)
|
+3%
|
+17%
|
+8%
|
+10%
|
|
Quarter
3 (Q3)
|
+4%
|
+6%
|
+1%
|
+4%
|
|
Nine months to September (9M)
|
+3%
|
+13%
|
+6%
|
+7%
|
1 Like-for-like
movements exclude the impact of currency exchange, acquisitions and
divestments
EBITDA
for the period was $3.9 billion, 15% ahead of the prior year and
11% ahead on a like-for-like basis reflecting strong volume growth
and a continued focus on price improvements and cost
rationalisation to offset input cost inflation. Third quarter and
nine month EBITDA margins were ahead in all Divisions.
|
EBITDA (like-for-like) change versus 2020
|
Americas Materials
|
Europe Materials
|
Building Products
|
Group
|
|
First
half (H1)
|
+6%
|
+52%
|
+12%
|
+19%
|
|
Quarter
3 (Q3)
|
+4%
|
+7%
|
+2%
|
+4%
|
|
Nine months to September (9M)
|
+5%
|
+28%
|
+9%
|
+11%
|
Sustainability
Sustainability
is deeply embedded in all aspects of our business and we recognise
the importance of our role in the delivery of a lower carbon and
more resilient built environment. Our 2025 carbon reduction targets
are industry leading and we remain fully committed to achieving our
ambition of carbon neutrality by 2050. Further details on our
carbon reduction strategy will be communicated in the first half of
2022.
Trading
Outlook
Based
on current trading conditions and the positive momentum that we see
across our markets, we expect to deliver another record performance
in 2021, with full-year EBITDA in excess of $5.25 billion and
further margin expansion. Looking ahead to 2022, we expect the
positive underlying demand and pricing backdrop to continue albeit
against an inflationary input cost environment. We are encouraged
by the passing of the $1.2 trillion infrastructure package by the
United States (US) Congress, which significantly increases the
commitment to future infrastructure investment in the US. We
believe that this positive demand backdrop, together with the
strength and resilience of our business model, leaves us well
positioned to deliver further growth and value creation for all of
our stakeholders.
Americas
Materials
Nine-month
like-for-like sales for our Americas Materials operations were 3%
ahead of the equivalent period in 2020, driven by higher volumes in
aggregates, cement and readymixed concrete, along with pricing
progression across all lines of business.
Like-for-like
EBITDA for Q3 was ahead of 2020, resulting in nine-month EBITDA 5%
ahead on a like-for-like basis, with higher volumes, positive
pricing, and good operating performance offsetting commodity cost
inflation.
Key Products in Brief
● Aggregates: Like-for-like aggregates volumes for the nine
months were 2% ahead of 2020 driven by good demand in the Northeast
and West divisions; average year-to-date prices increased by 2%. On
a mix-adjusted basis, aggregates pricing increased 4%, with
increases in all regions, resulting in good margin
expansion.
● Asphalt: Unfavourable weather in the South and lower
volumes in the Northeast and Great Lakes divisions offset strong
backlog execution in the West division, resulting in nine-month
like-for-like volumes 1% behind 2020; average prices were 2%
ahead.
● Readymixed Concrete: Volumes for the nine months were 4% ahead on a
like-for-like basis, driven by strong demand; average prices were
4% ahead with increases in all regions.
● Paving and Construction
Services: Nine-month
like-for-like sales in our paving and construction services
business were 4% behind 2020 primarily driven by inclement weather
in the South and a slower start to the season in the Northeast and
Great Lakes divisions. The West division saw increased activity
driven by good underlying demand. Construction
margins were ahead of prior year.
● Cement: Strong market demand across all regions resulted
in nine-month volumes 6% ahead of 2020; prices were 5% ahead with
good momentum in both the US and Canada.
Europe
Materials
Nine-month
like-for-like sales were 13% ahead of 2020, reflecting volume
growth and price progress against a prior year comparative which
was heavily impacted by the COVID-19 pandemic. In particular,
Eastern Europe and the UK were strong contributors, with improved
performance across all product domains.
Like-for-like
EBITDA for Q3 was ahead of prior year driven by price increases
across all products and strong fixed cost control; nine-month
like-for-like EBITDA was 28% ahead, reflective of the very strong
first half performance.
Key Markets in Brief
● Western Europe: Demand increased following the easing of COVID-19
restrictions resulting in overall nine-month like-for-like sales
well ahead of 2020. Sales in the UK were ahead with good volumes
and improved pricing across all lines of business, with EBITDA well
ahead supported by cost control initiatives. France and Ireland
benefited from increased demand against a prior year comparative
which was impacted by COVID-19 related shutdowns. Sales in Germany
increased supported by good volumes, while adverse weather as well
as the non-recurrence of a major project impacted activity levels
in Finland.
● Eastern Europe: Nine-month like-for-like sales were ahead of prior year as
robust market demand resulted in higher cement volumes; prices
increased across most regions, with cost savings initiatives also
contributing to EBITDA growth.
● Asia: Strong cement volumes in the Philippines were
partly offset by lower prices, resulting in increased sales for the
nine months compared to 2020. EBITDA was also strongly ahead,
driven by increased volumes coupled with benefits from operational
and procurement savings initiatives.
Building
Products
Nine-month
like-for-like sales were 6% ahead of 2020, reflecting improved
pricing and strong demand for residential construction,
particularly in North America, partly offset by slower recovery in
the non-residential sector. Increased sales and ongoing cost
savings initiatives resulted in like-for-like EBITDA 9% ahead of
the prior year period.
Key Products in Brief
● Architectural Products: Nine-month like-for-like sales and EBITDA were
ahead of prior year as the North America business experienced
strong volume growth in the early months of the year. The pace of
growth moderated in the third quarter against a very strong
comparative, but demand remained resilient. Like-for-like sales and
EBITDA in Europe were also ahead.
● Building Envelope: Nine-month like-for-like sales and EBITDA were
ahead, as good pricing discipline and cost mitigation efforts
offset significant input cost inflation.
● Infrastructure Products: Nine-month like-for-like sales were ahead of prior
year driven by growth in Europe and the Enclosures business in
North America. Strong cost management helped to offset inflationary
pressures resulting in like-for-like EBITDA
growth.
● Construction Accessories: Recovery of activity levels post COVID-19
restrictions drove nine-month like-for-like sales growth against
the same period in 2020, particularly in our businesses in the US
and UK. Strong volume growth and lower fixed overhead costs offset
input cost inflation, resulting in like-for-like EBITDA ahead of
prior year.
Profit
Before Tax Outlook
We
expect full-year depreciation and amortisation expense to be
broadly in line with prior year (2020: $1.7 billion).
The
net gain on divestments and non-current asset disposals in 2021 is
expected to be $0.1 billion (2020: $9 million).
The
Group's share of profits from equity accounted entities is expected
to be ahead of prior year (2020: $32 million profit
pre-impairment).
Net
finance costs are expected to be approximately $50 million lower
than prior year (2020: $490 million) primarily due to lower average
gross debt levels and borrowing costs.
Taking
each of these elements into account together with our EBITDA
outlook, we expect full-year profit before
tax
to be well ahead of 2020 (2020: $2.5 billion
pre-impairment).
Balance
Sheet Expectations
Reflecting our year-to-date
acquisition spend, increased capital expenditure and the
continuation of the Group's share buyback programme, and assuming
no further material development activity for the remainder of the
year, year-end net debt is expected to be approximately $6.1
billion (2020: $5.9 billion). Taking into account our full-year
EBITDA guidance and our continued strong cash generation, our
year-end net debt to EBITDA ratio is expected to be approximately
1.2x (2020: 1.3x).
Capital
Allocation Update
Share
Buyback Programme
As
announced on 30 September 2021, reflecting our strong financial
position and commitment to returning cash to shareholders, the
Group continued its share buyback programme with a further tranche
of $0.3 billion to be completed no later than 23 December 2021.
Year-to-date, the Group has returned $0.8 billion of cash to
shareholders through our ongoing share buyback
programme.
Development
Activity
The
Group has spent c. $1.4 billion on 17 acquisitions in the
year-to-date (including deferred and contingent consideration in
respect of prior year acquisitions).
On
the divestment front, the Group completed seven transactions and
realised total business and asset disposal proceeds of c. $0.4
billion, inclusive of $0.1 billion of deferred proceeds from prior
year divestments.
2021
Acquisitions and Investments
The
Building Products Division completed seven bolt-on acquisitions
year-to-date amounting to a total spend of c. $0.8 billion. The
acquisition in Q3 of National Pipe & Plastics, a water, energy
and infrastructure solutions business, represents the largest
acquisition year-to-date for this Division. The Americas Materials
Division completed seven bolt-on acquisitions across the US for a
total spend of c. $0.6 billion year-to-date. The acquisition in Q3
of Angel Brothers, a vertically-integrated asphalt paving business
in Texas, represents the largest acquisition by the Group in the
year-to-date. The Europe Materials Division completed three
acquisitions year-to-date for a total spend of $13
million.
2021
Divestments and Disposals
The
divestment of the Brazilian operations by the Americas Materials
Division represented the largest divestment year-to-date. Together
with a further six other divestments, the Group realised total
proceeds of c. $0.4 billion, including proceeds from the disposal
of surplus property, plant and equipment and other non-current
assets.
CRH will report its preliminary results for the
full-year 2021 on Thursday, 3 March 2022.
CRH plc will host an analysts'
conference call at 08:30 GMT on Tuesday, 23 November 2021 to
discuss the Trading Update. To join this call please dial: +353 (0)
1 506 0650, confirmation code 4973308 (further international
numbers are available here).
A recording of the conference call will be available on
the Results
& Presentations page of the CRH
website.
Contact CRH at +353 1 404 1000
Albert
Manifold Chief
Executive
Jim
Mintern
Finance Director
Frank
Heisterkamp Director of Capital Markets
& ESG
Tom
Holmes
Head of Investor Relations
About CRH
CRH
(LSE: CRH, ISE: CRG, NYSE: CRH) is the leading building materials
business in the world, employing c.77,000 people at c.3,100
operating locations in 29 countries. It is the largest building
materials business in North America and Europe and also has
regional positions in Asia. CRH manufactures and supplies a range
of integrated building materials, products and innovative solutions
which can be found throughout the built environment, from major
public infrastructure projects to commercial buildings and
residential structures. A Fortune 500 company, CRH is a constituent
member of the FTSE 100 Index, the EURO STOXX 50 Index, the ISEQ 20
and the Dow Jones Sustainability Index (DJSI) Europe. CRH's
American Depositary Shares are listed on the NYSE.
For more information
visit www.crh.com
Disclaimer
In
order to utilise the "Safe Harbor" provisions of the United States
Private Securities Litigation Reform Act of 1995, CRH public
limited company (the "Company"), and its subsidiaries
(collectively, "CRH" or the "Group") is providing the following
cautionary statement.
This
document contains statements that are or may be deemed to be
forward-looking statements with respect to the financial condition,
results of operations, business, viability and future performance
of CRH and certain of the plans and objectives of CRH. These
forward-looking statements may generally, but not always, be
identified by the use of words such as "will", "anticipates",
"should", "could", "would", "targets", "aims", "may", "continues",
"expects", "is expected to", "estimates", "believes", "intends" or
similar expressions. These forward-looking statements include all
matters that are not historical facts or matters of fact at the
date of this document.
By
their nature, forward-looking statements involve risk and
uncertainty because they relate to events and depend on
circumstances that may or may not occur in the future and reflect
the Company's current expectations and assumptions as to such
future events and circumstances that may not prove
accurate.
A
number of material factors could cause actual results and
developments to differ materially from those expressed or implied
by these forward-looking statements, certain of which are beyond
our control, as detailed in the section entitled "Risk Factors" in
our 2020 Annual Report on Form 20-F as filed with the US Securities
and Exchange Commission.
You
are cautioned not to place undue reliance on any forward-looking
statements. These forward-looking statements are made as of the
date of this document. The Company expressly disclaims any
obligation or undertaking to publicly update or revise these
forward-looking statements other than as required by applicable
law.
The
forward-looking statements in this document do not constitute
reports or statements published in compliance with any of
Regulations 6 to 8 of the Transparency (Directive 2004/109/EC)
Regulations 2007.
SIGNATURE
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
|
|
CRH
public limited company
|
|
|
(Registrant)
|
|
|
|
|
Date 23
November 2021
|
|
|
|
By:___/s/Neil
Colgan___
|
|
|
N.Colgan
|
|
|
Company Secretary
|
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