'Solid' start sees building giant CRH post growth in earnings and revenue

Group said revenue grew by 2% to €6.5bn in the first three months of the year 

 Albert Manifold, Group Chief Executive of CRH at the NYSE. Photo Credit: NYSE

CRH has posted increases in both earnings and revenues following a "solid" start to 2024, the company said. 

The building giant's revenue grew by 2% to €6.5bn in what it called its least significant season of the year, driven by positive pricing momentum, favourable weather and early-season activity. 

In a trading statement on Friday morning, CRH said its net income rose significantly to $114m (€105.8m), up from a loss of $31m in the same period last year, reflecting "good operating performance and a gain on the completion of phases one and two of the European Lime divestiture."

The group's adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed to $445m (€412.8m) in the period, rising by 15% compared to the same period last year.

The building materials giant also completed its $2.1bn (€1.9bn) acquisition of materials assets in Texas during the period, which included cement and ready-mixed concrete assets purchased from US firm Martin Marietta Materials. CRH said seven other strategic bolt-on acquisitions were also completed in the first three months for $100m.

In addition, CRH said in February that it agreed to acquire a majority stake in Australian concrete maker Adbri in a deal worth €700m.

Sales in the group's Americas Materials division increased by 16% in the first three months of 2024 compared with the same period last year, helped by price rises offsetting higher input costs.

CRH's building solutions division in this market delivered sales growth of 2%, the company said, while sales in the European Building Solutions division fell by 8% following subdued new-build residential activity.

Total revenues in the Europe Materials Solutions also dropped by 8% with positive pricing offset by a slowdown in activity amid poor weather conditions. 

Last year, the group completed its move to the New York Stock Exchange, with it delisting from Euronext Dublin. The firm was the largest traded company on the Euronext Dublin exchange.

"We are pleased to report a good first quarter performance in what is the seasonally least significant period for our business," said chief executive of CRH, Albert Manifold. 

Reaffirming its previous guidance for 2024, Mr Manifold added, "We believe the strength of our balance sheet together with our focus on the efficient allocation of our capital enables us to capitalize on the opportunities we see for further growth and value creation in 2024 and beyond."