CRH release third quarter financial results

Total revenues of US$10.5 billion (Q3 2023: US$10.1 billion) were 4% ahead, while organic total revenues were 1% behind the corresponding period in 2023. Contributions from acquisitions and strong commercial management more than offset the impact of divestitures and lower activity levels due to adverse weather in certain regions. Net income of US$1.4 billion (Q3 2023: US$1.3 billion) was 5% ahead of the prior year reflecting strong operating performance, gains on disposal of long-lived assets and a gain on the European Lime divestiture. Adjusted EBITDA of US$2.5 billion (Q3 2023: US$2.2 billion) was 12% ahead as a result of the continued delivery of CRH's integrated solutions strategy, positive pricing, ongoing cost control and further operational efficiencies. Organic Adjusted EBITDA was 8% ahead of Q3 2023. The Group's net income margin of 13.2% (Q3 2023: 13.0%) and Adjusted EBITDA margin of 23.3% (Q3 2023: 21.6%) were both ahead of the comparable prior year period. Basic Earnings Per Share (EPS) for Q3 2024 was US$1.99 (Q3 2023: US$1.81).

• Americas Materials Solutions' total revenues were 4% ahead of Q3 2023, driven by strong pricing across all lines of business along with contributions from acquisitions which mitigated the effects of lower activity in certain markets due to weather disruption. Adjusted EBITDA was 16% ahead of the prior year period driven by pricing improvements, operational efficiencies and good cost management, along with gains on the disposal of certain land assets.
• Americas Building Solutions' total revenues were 1% ahead of Q3 2023 as contributions from acquisitions more than offset the impact of lower activity levels due to challenging weather and subdued new-build residential demand. Adjusted EBITDA was 9% lower due to adverse weather and a strong prior year comparative.
• Europe Materials Solutions' total revenues were 7% ahead of Q3 2023, benefiting from the acquisition of Adbri Ltd (Adbri) in July 2024 and partly offset by the divestiture of the European Lime operations, as well as lower activity levels in certain markets. Adjusted EBITDA was 24% ahead of the prior year driven by good commercial management, lower energy costs, operational efficiencies and contributions from acquisitions.
• Europe Building Solutions' total revenues were 4% behind Q3 2023, amid continued subdued demand in new-build residential markets. Adjusted EBITDA was 10% behind as the impact of lower activity was only partially offset by ongoing cost saving measures.

Acquisitions and Divestitures

During the three months ended September 30, 2024, CRH completed 12 acquisitions for a total consideration of US$1.4 billion, compared with US$0.4 billion in the same period of 2023. Americas Materials Solutions completed seven acquisitions, Americas Building Solutions completed three acquisitions and Europe Materials Solutions completed two acquisitions.

Overall, during the nine months ended September 30, 2024, CRH completed 28 acquisitions for a total consideration of US$3.9 billion, compared with US$0.6 billion in the first nine months of the prior year. On July 1, 2024, CRH completed the acquisition of a majority stake in Adbri for a total consideration of US$0.8 billion. Adbri is an integrated materials business with high-quality assets and leading market positions in Australia, complementing our core competencies in cement, concrete and aggregates and creating additional growth and development opportunities for our existing Australian business.

During the three months ended September 30, 2024, cash proceeds from divestitures and disposals of long-lived assets were US$0.1 billion, including the third and final phase of the divestiture of the European Lime operations, which was completed on August 30, 2024.

For the nine months ended September 30, 2024, the Company realised cash proceeds from divestitures and disposals of long-lived assets of US$1.2 billion, primarily related to the divestiture of the European Lime operations. No divestitures occurred in the first nine months of the prior year.

Dividends and Share Buybacks

In line with the Company's policy of consistent long-term dividend growth, the Board has declared a quarterly dividend of US$0.35 per share. This represents an annualized increase of 5% on the prior year. The dividend will be paid wholly in cash on December 18, 2024, to shareholders registered at the close of business on November 22, 2024. The ex-dividend date will be November 22, 2024.

On November 6, 2024, the latest tranche of the share buyback program was completed, bringing the year-to-date repurchases to US$1.2 billion, including approximately four million shares repurchased in Q3 2024 for a total consideration of US$0.3 billion. The Company is pleased to announce that it is commencing an additional US$0.3 billion tranche to be completed no later than February 26, 2025.

Innovation and Sustainability

The transition to a more sustainable built environment represents a significant commercial opportunity for CRH. Our strategy focuses on transforming essential materials into value-added and innovative solutions to address three global challenges: water, circularity and decarbonisation. We continue to enhance our capabilities to meet these challenges through investment in innovative technologies. Two recent examples include our investment in FIDO AI, supporting the development of artificial intelligence leak detection software to accelerate our water infrastructure solutions in North America, as well as CRH’s strategic investment partnership with Sublime Systems, a U.S. based company operating in the field of sustainable cement production. Through these efforts, we continue to develop and deliver innovative solutions for our customers.

Read the article online at: https://www.worldcement.com/europe-cis/08112024/crh-release-third-quarter-financial-results/