CRH upbeat despite inflation pressures as sales and earnings grow

Building materials giant CRH said its performance in the first half of the year was positive, with further growth in sales and earnings, despite the impact of rising costs.

The company said sales rose by 14 per cent to $15 billion (€14.9 billion) in the first six months of 2022, with earnings before interest, tax, depreciation and amortisation (ebitda) up 21 per cent to $2.2 billion. Ebitda margin was 14.7 per cent, up 90 basis points. Earnings per share for the six months was 36 per cent higher at $1.21.

CRH said there was positive underlying demand and commercial progress in both North America and Europe, with strong pricing to address inflation, and commercial and operational initiatives to offset rising costs.

The company has spent $2.8 billion on acquisitions, including US residential fencing and railing company Barrette Outdoor Living for $1.9 billion, as the company agreed the sale of its North American glass building products unit.

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‘’CRH has delivered another strong performance with further growth in sales, ebitda and margin despite a challenging and volatile cost environment. This performance reflects the continued execution of our integrated and sustainable solutions strategy,” said CRH chief executive Albert Manifold. “Looking ahead, despite some continued cost headwinds, the strength of our balance sheet and resilience of our business leaves us well positioned to deliver superior value for all our stakeholders.’’

Full-year earnings before interest, tax, depreciation and amortisation are expected to be $5.5 billion, up from $5 billion in 2021.

The Irish Times reported last week that workers at CRH subsidiary Tarmac in the UK had described as “a kick in the teeth” the 14 per cent pay hike Mr Manifold had received last year after the company offered them a 3.75 per cent raise in ongoing pay talks.

After workers rejected the offer, Mick Coppin, GMB trade union lead organiser for Tarmac, said: “In the midst of a cost-of-living crisis, it is a disgrace they’ve been offered nothing more than a real-terms pay cut.”

CRH did not comment at the time. On Thursday, Mr Manifold said in relation to “individual employee commentary”, he said would not comment “on specific pay negotiations at any particular group company”.

“We are very aware of the increased cost of living and the impact across our businesses and across our group,” he said. “We see that and local managers strive to deliver pay and conditions for all employees that are market competitive and reward the contribution they make to the business.”

Mr Manifold’s pay package, which includes various bonuses and awards, rose to just under €14 million last year, setting a new record for the head of an Irish-listed company. His remuneration was 289 times the median €48,200 pay last year of CRH’s UK employees.