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
21 November
2023
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:
Q3 Earnings Update
Earnings
Update
Nine
months ended 30 September 2023
Key Highlights
●
Strong
performance; further growth in sales, EBITDA &
margin
●
Positive
underlying demand across key end-use markets & further
commercial progress
Nine months ended 30 September 2023
Change1
Sales $26.3bn
+8%
EBITDA $4.8bn
+14%
EBITDA Margin 18.1%
+100bps
●
$2.1bn
acquisition of materials assets in high-growth Texas
market
●
$0.7bn
on 16 bolt-on acquisitions year-to-date; robust pipeline of
opportunities
●
Ongoing
share buyback program to return ~$3bn to shareholders in
2023
●
Increasing
DPS to $1.33 (+5%) for FY23; transitioning to quarterly dividends
in 2024
●
Strong
& flexible balance sheet; net debt/EBITDA expected to be ~1.1x
at year-end
●
Raising
guidance; expect full-year EBITDA to be c.$6.3bn (2022:
$5.6bn)
●
Differentiated strategy delivering
10th consecutive
year of margin expansion
Albert Manifold, Chief Executive, said today:
"I am pleased to report another strong performance for our
business. Our integrated solutions strategy continues to deliver
superior growth, while our strong cash generation and disciplined
approach to capital allocation enables us to create additional
value for our shareholders. Looking ahead to the remainder of the
year, we are raising our guidance and expect to deliver full-year
EBITDA of approximately $6.3 billion, representing another record
year for CRH."
Announced Tuesday, 21 November 2023
1 Prior year income statement
information is presented on a continuing operations basis,
excluding the results of the Building Envelope business which was
divested in April 2022 and has been classified within discontinued
operations.
Trading
Overview
Group sales for the nine months ended 30 September 2023 amounted to
$26.3 billion, an increase of 8% compared with the corresponding
period in 2022, or 3% ahead on a like-for-like2 basis.
The positive momentum experienced in the first half of the year
continued into the third quarter, underpinned by strong commercial
progress and positive underlying demand across key end-use
markets.
Third quarter sales in Americas
Materials Solutions were
ahead of prior year, driven by strong pricing progress across all
lines of business, which offset lower activity levels resulting
from unfavourable weather in certain regions. Q3 sales
in Americas
Building Solutions were
ahead of prior year, driven by increased pricing and contribution
from acquisitions while like-for-like sales were in line with the
prior year. Europe
Materials Solutions delivered
positive sales growth in Q3 driven by good commercial management
and a currency tailwind which more than offset the impact of lower
activity levels. Third quarter sales in Europe
Building Solutions continued
to be impacted by subdued new-build residential activity and
like-for-like sales were behind prior year.
Sales change versus 2022
|
Americas Materials Solutions
|
Americas Building Solutions
|
Europe Materials Solutions
|
Europe Building Solutions
|
Group
|
First half (H1)
|
+9%
|
+21%
|
-
|
-4%
|
+8%
|
Quarter 3 (Q3)
|
+5%
|
+4%
|
+17%
|
+10%
|
+8%
|
Nine months to September (9M)
|
+7%
|
+15%
|
+6%
|
+1%
|
+8%
|
EBITDA for the cumulative nine-month period was $4.8 billion, 14%
ahead of prior year, or 9% ahead on a like-for-like basis,
reflecting continued delivery of our integrated solutions strategy,
strong commercial management and operational efficiencies, driving
further margin expansion.
EBITDA change versus 2022
|
Americas Materials Solutions
|
Americas Building Solutions
|
Europe Materials Solutions
|
Europe Building Solutions
|
Group
|
First half (H1)
|
+13%
|
+25%
|
+13%
|
-15%
|
+14%
|
Quarter 3 (Q3)
|
+10%
|
+19%
|
+33%
|
-16%
|
+14%
|
Nine months to September (9M)
|
+11%
|
+23%
|
+20%
|
-16%
|
+14%
|
Sustainability
Sustainability is deeply embedded in all aspects of our business.
We continue to uniquely integrate our materials, products and
services to offer more sustainable solutions for our customers and
advance our progress in circularity. Dedicated teams across our
business continue to make progress on our industry-leading target
to deliver a 30% reduction in group-wide absolute carbon emissions
by 2030. The Science Based Targets initiative (SBTi) has validated
our 2030 decarbonization targets in line with a 1.5°C pathway,
keeping us on the path to achieving our overall ambition of
becoming a net-zero business by 2050.
Trading
Outlook
Based on current trading conditions and the momentum that we see
across our businesses, we are raising our guidance and expect to
deliver full-year EBITDA of c.$6.3 billion (2022: $5.6 billion),
full-year net cash inflow from operating activities of c.$5 billion
(2022: $4.0 billion) and a year-end net debt to EBITDA ratio of
c.1.1x (2022: 0.9x). Looking ahead to 2024 and notwithstanding some
macroeconomic uncertainties, we expect resilient underlying demand
across our key end-use markets in North America and Europe,
underpinned by significant public investment in infrastructure and
increased re-industrialization activity in key non-residential
segments. While new-build residential construction is expected to
remain subdued, we expect positive pricing momentum to continue,
supported by good commercial management and the benefits of our
integrated and value-based solutions strategy.
2 Like-for-like
movements exclude the impact of currency exchange, acquisitions and
divestments.
Americas
Materials Solutions
Americas Materials Solutions sales for the first nine months of the
year were 7% ahead of 2022, or 6% ahead on a like-for-like basis,
with strong commercial progress across all lines of business and
robust construction sales partly offset by lower activity in
certain regions impacted by unfavourable weather. Nine-month EBITDA
was 11% ahead of prior year, or 10% ahead on a like-for-like basis,
supported by good pricing across all markets and strong operational
efficiencies offsetting continued cost pressures.
Essential Materials
Aggregates volumes for the nine months were 2% behind 2022,
impacted by unfavourable weather conditions in the West region.
Demand in the Great Lakes and Northeast regions remained strong,
benefiting from higher levels of infrastructure funding. Good
commercial management led to a 14% increase in average prices, with
increases in all regions. Strong price progression of 16% in our
cement business delivered sales growth offsetting lower demand with
volumes 5% behind prior year mainly due to adverse weather in the
North Texas and West Inland regions. Overall Essential Materials
sales for the nine months were 10% ahead of 2022.
Road Solutions
Nine-month sales in our paving and construction services business
were 5% ahead of 2022 with growth in most regions driven by
improved pricing and good backlog execution. Asphalt volumes were
broadly in line with prior year while average prices increased by
8%. Readymixed concrete volumes were 4% behind 2022, despite a
strong performance in Great Lakes supported by improved demand.
Volumes were impacted by unfavourable weather in the West and
softer new-build residential demand in the South. Readymixed
concrete prices increased by 13%. Overall Road Solutions sales were
6% ahead of prior year.
Americas
Building Solutions
Nine-month sales in Americas Building Solutions were 15% ahead of
2022, or 1% ahead on a like-for-like basis, reflecting
contributions from prior year acquisitions and good commercial
progress. The positive momentum experienced in the first half of
the year continued into Q3, with sales growth, production
efficiencies and a continued focus on cost control resulting in
EBITDA 23% ahead of prior year, or 9% ahead on a like-for-like
basis.
Outdoor Living Solutions
Nine-month sales were 20% ahead of 2022, supported by good
commercial progress, solid underlying demand and a strong
contribution from the Barrette Outdoor Living acquisition.
Like-for-like sales were 2% ahead of prior year.
Building & Infrastructure Solutions
Nine-month sales were 7% ahead of 2022 benefiting from strong
commercial management, positive underlying demand in the water,
telecommunications and energy utility markets and good
contributions from recent acquisitions. Nine-month like-for-like
sales were in line with 2022.
Europe
Materials Solutions
Sales in Europe Materials Solutions for the nine months were 6%
ahead of the equivalent period in 2022, or 5% ahead on a
like-for-like basis, reflecting continued pricing progress which
more than offset the impact of lower activity levels due to subdued
residential demand. Nine-month EBITDA was 20% ahead of 2022, or 17%
ahead on a like-for-like basis, as a result of strong commercial
management, operational excellence initiatives and cost saving
actions which mitigated the impact of cost inflation.
Essential Materials
Nine-month sales were 9% ahead of 2022, primarily driven by good
commercial management across all markets. Activity levels were
impacted by unfavourable weather earlier in the year in Central
Europe and subdued new-build residential demand amid higher
interest rates.
Road Solutions
Despite the impact of adverse weather in the first half of the year
and subdued market demand in the UK and Finland, strong pricing
progress across all key markets resulted in total sales for the
nine months 3% ahead of the same period in 2022.
Europe
Building Solutions
Overall sales in Europe Building Solutions for the nine-month
period were 1% ahead of prior year but 5% behind on a like-for-like
basis, primarily due to subdued new-build residential activity.
Infrastructure and non-residential demand was resilient, but slower
residential markets resulted in EBITDA 16% behind prior
year.
Outdoor Living Solutions
Like-for-like sales were in line with prior year as softening
demand in key markets and the impact of unfavourable weather
earlier in the year were offset by robust public sector order books
in the Netherlands and Belgium.
Building & Infrastructure Solutions
Infrastructure Products experienced strong sales growth over the
nine-month period due to good demand in both non-residential and
infrastructure markets in our Australian businesses supported by
strong commercial progress in Europe. Demand for Precast Products
and Construction Accessories was impacted by slower new-build
residential activity across most countries. Nine-month
like-for-like sales in Building & Infrastructure Solutions were
7% behind 2022.
Profit
Before Tax Outlook
We expect full-year depreciation and amortisation to be slightly
higher than prior year (2022: $1.7 billion) due to the impact of
acquisitions.
The Group's share of profits from equity accounted entities is
expected to be in line with 2022, while profit from non-current
asset disposals in 2023 is expected to be ahead of prior
year.
Net finance costs are expected to be lower than prior year (2022:
$376 million) primarily due to higher interest income.
Taking each of these items into account together with our EBITDA
expectations, we expect full-year profit before tax to be well
ahead of 2022 (2022: $3.5 billion).
Balance
Sheet Expectations
Reflecting our year-to-date acquisition spend, increased capital
expenditure and the Group's ongoing share buyback program, year-end
net debt is expected to be c.$7.0 billion (2022: $5.1 billion).
Considering our full-year EBITDA guidance and our continued strong
cash generation, our year-end net debt to EBITDA ratio is expected
to be c.1.1x (2022: 0.9x).
Capital
Allocation
The Group completed the most recent tranche of its increased share
buyback program in September, bringing total cash returned to
shareholders under our ongoing share buyback program to c.$6
billion since its commencement in May 2018. As announced on 25
September 2023, the Group continued its share buyback program with
a further tranche of $1 billion to be completed no later than 20
December 2023, reflecting our strong financial position and
commitment to returning cash to shareholders. This $1 billion
tranche is the third stage of the wider $3 billion program
announced on 2 March 2023.
Consistent with our progressive dividend policy and strong
financial position, the Board has decided to accelerate the payment
of the 2023 dividend by distributing a second interim dividend of
$1.08 per Ordinary Share. The second interim dividend payment will
be in lieu of a final dividend, resulting in a full-year dividend
per share of $1.33 for 2023 and representing a 5% increase compared
to prior year. The dividend, which will be paid wholly in cash,
will be paid on 17 January 2024 to shareholders registered at the
close of business on 15 December 2023. The ex-dividend date will be
14 December 2023. Commencing in Q1 2024, the Group intends to
transition to quarterly dividends with more equally distributed
payments.
Development Activity
2023 Acquisitions
The Group completed sixteen acquisitions year-to-date for a total
consideration of $0.7 billion, the largest of which was the
acquisition by Americas Building Solutions of Hydro International,
a leading provider of stormwater products, wastewater treatment
products, wastewater services, and data solutions.
As announced on 21 November 2023, the Group has reached an
agreement to acquire an attractive portfolio of cement and
readymixed concrete assets in Texas, USA (the "Assets") for a total
consideration of $2.1bn. The combined portfolio of assets is
expected to generate proforma 2023 EBITDA of approximately $170
million. The Assets comprise a 2.1mt capacity cement plant located
between San Antonio and Austin, a network of terminals along the
eastern gulf coast of Texas and a portfolio of 20 readymixed
concrete plants with annual shipments of c.1.6m cubic yards serving
the Austin and San Antonio markets. The proposed transaction is
subject to regulatory approval and is expected to complete in H1
2024.
The acquisition of high-quality materials assets in Texas further
strengthens our market leading position in the state and increases
our exposure to attractive, high-growth markets. Our ability to
leverage our cement expertise and technical capabilities will
enable us to enhance and optimize our existing footprint in Texas,
resulting in significant synergies and self-supply opportunities.
We also believe there is significant potential to unlock additional
growth opportunities across an expanded footprint in this
attractive growth market.
2023 Divestments and Disposals
During the first nine months of 2023, the Group realised proceeds
of $64 million from the disposal of surplus property, plant and
equipment and other non-current assets. There were no business
divestments completed during the period.
Transition
to US GAAP
Following
the successful transition of our primary listing to the New York
Stock Exchange on 25 September, CRH will transition to US GAAP
reporting. We expect to file our full-year 2023 results under US
GAAP on form 10-K together with an IFRS to US GAAP reconciliation
on 29 February 2024. Quarterly reporting on form 10-Q will commence
in May 2024.
Financial restatements under US GAAP for full-year 2021 and 2022,
including IFRS to US GAAP reconciliations, will be published in
advance of our full-year 2023 results.
CRH plc will host an analysts' conference call at 13:00 GMT / 08:00
EST on Tuesday, 21 November 2023 to discuss the Earnings Update.
Registration for this call can be made here. A
recording of the conference call will be
available on
the Results
& Presentations page
of the CRH website.
Albert Manifold Chief Executive
Jim
Mintern Chief Financial Officer
Frank
Heisterkamp Director of Capital Markets &
ESG
Tom
Holmes Head of Investor Relations
About CRH
CRH (NYSE: CRH, LSE: CRH) is the leading provider of building
materials solutions that build, connect and improve our world.
Employing c.75,800 people at c.3,160 operating locations in 29
countries, CRH has market leadership positions in both North
America and Europe. As the essential partner for road and critical
utility infrastructure, commercial building projects and outdoor
living solutions, CRH's unique offering of materials, products and
value-added services helps to deliver a more resilient and
sustainable built environment. The company is ranked among sector
leaders by Environmental, Social and Governance (ESG) rating
agencies. A Fortune 500 company, CRH's shares are listed on the
NYSE and LSE.
Registered Office: No 12965. Registered Office: 42 Fitzwilliam
Square, Dublin 2, R02 R279, Ireland
Timetable for the Second Interim Dividend
The timetable for payment of the Second Interim Dividend of $1.08
per share is as follows:
Ex-dividend Date……… 14 December 2023
Record Date 15 December 2023
Payment Date . 17 January 2024
The default payment currency is US Dollar for shareholders who hold
their Ordinary Shares through a Depository Trust Company ("DTC")
participant. It is also US Dollars for shareholders holding their
Ordinary Shares in registered form, unless a currency election has
been registered with CRH's Transfer Agent, Computershare Trust
Company N.A. by 5.00 p.m. (EST) / 10.00 p.m. (GMT) on 14 December
2023.
The default payment currency for shareholders holding their
Ordinary Shares in the form of Depository Interests is euro. Such
shareholders can elect to receive the dividend in US Dollar or
Pounds Sterling by providing their instructions to the Company's
Depositary Interest provider, Computershare Investor Services plc,
by 5.00 p.m. (GMT) on 18 December 2023.
Disclaimer
/ Forward-Looking Statements
In
order to utilize 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") are 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.
In
particular, the following, among other statements, are all forward
looking in nature: plans and expectations regarding demand outlook,
growth and other macroeconomic trends in CRH's markets, government
funding initiatives and priorities, pricing trends, costs and
weather patterns; plans and expectations regarding business
strategy, value creation and growth opportunities, including in
relation to CRH's acquisition strategy, acquisition opportunities,
the integration of acquired assets and businesses and the timing
for completion of and expected benefits from the Group's
acquisition of cement and readymixed concrete assets in Texas,
United States; plans and expectations regarding cash returns for
shareholders, including the amount, timing and frequency of
dividends and share buybacks; plans and expectations regarding
CRH's financial capacity, balance sheet, sales growth, EBITDA, cash
flow, margins, profits and profit before tax, debt and net debt,
costs and expenses, depreciation and amortization and capital
allocation; plans and expectations regarding the anticipated
benefits of CRH's transition to a US primary listing and domestic
company reporting; plans and expectations regarding the
implementation of CRH's transition to US GAAP and the timing of
publication of CRH's financial results or presentations related
thereto; plans and expectations regarding CRH's decarbonization
target and delivery of sustainable solutions and products; and
expectations regarding the strategic risks and uncertainties facing
CRH.
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, and which include, among other factors: economic and
financial conditions, including market turbulence, high interest
rates, inflation, price volatility and/or labor and materials
shortages, in various countries and regions where we operate; the
pace of growth in the sectors in which we operate; demand for
infrastructure, residential and non-residential construction and
our products in our geographic markets; increased competition and
its impact on prices; increases in energy and/or raw materials
costs; adverse changes to laws and regulations, including in
relation to climate change and sustainability; the impact of
unfavorable weather, including due to climate change; our ability
to successfully develop and integrate sustainable solutions into
our business and investor and/or consumer sentiment regarding the
importance of sustainable practices and products; approval or
allocation of funding for infrastructure programs; adverse
political developments in various countries and regions, including
acts of terrorism or war, such as the ongoing geopolitical
conflicts in Ukraine and the Middle East; failure to complete or
successfully integrate acquisitions or make timely divestments;
indirect and direct effects of the COVID-19 pandemic; privacy and
protection of sensitive data failures, cyber-attacks, sabotage or
other incidents and their direct or indirect effects on our
business; and exposure of associates, contractors, customers,
suppliers and other individuals to health and safety risks,
including due to product failures. There are important factors,
risks and uncertainties that could cause actual outcomes and
results to be materially different, including risks and
uncertainties relating to CRH described under "Principal Risks and
Uncertainties" in CRH's Report on Form 6-K regarding the results
for the six-month period ended June 30, 2023 as filed with the US
Securities and Exchange Commission (the "SEC"), as well as
"Principal Risks and Uncertainties (Risk Factors)" in the Company's
2022 Annual Report on Form 20-F as filed with the SEC.
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 (as amended).
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 21
November 2023
|
|
|
By:___/s/Neil
Colgan___
|
|
N.Colgan
|
|
Company Secretary
|
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