CRH: Irish building supplies giant upgrades guidance as profit ticks up
Irish building materials giant CRH has upgraded its guidance for 2024 after its profit ticked up in its second quarter as a string of acquisitions helped to offset the impact of wet weather.
The firm, which is headquartered in Dublin and switched it’s primary listing from London to New York last year, said it now expects to achieve a minimum net income of $3.7bn (£2.9bn) in 2024 compared to the $3.5bn (£2.7bn) it had previously predicted. It also bumped up its high-end estimate to $3.85bn (£3bn) from $3.8bn (£2.9bn).
CRH reported a gross profit of just under $3.7m (£2.9bn) in the three months ending June 30, 2024, compared to $3.6m (£2.8bn) in the same period of 2023.
This brought the company’s gross profit for the six months ending June 30, 2024 to $5.5m (£4.3m), up from $5.2m (£4m) in the year before.
CRH also increased its earnings before interest, taxes, depreciation, and amortization (EBITDA) to $2.3bn (£1.8bn) during the quarter, a 12 per cent increase on the same period last year, bringing the total for its first half to $2.7bn (£2.1bn), up 13 per cent year on year.
The group’s Americas materials solutions division helped to drive this improved performance, increasing its revenue by six per cent on the previous year during the three months.
CRH said the arm has introduced price increases across the business which had offset the impact of lower activity in certain markets due to unfavorable weather.
The group made eight acquisitions totalling $400m (£314m) – a significant increase compared to none in the same period of 2023. Five of these acquisitions were by its Americas materials solutions business, while its Europe materials solutions arm completed two.
Albert Manifold, CRH chief executive, said: “We are pleased to report another period of further profit growth and margin expansion for CRH.
“The execution of our differentiated solutions strategy continues to deliver robust financial performance, while the strength of our balance sheet and relentless focus on the disciplined allocation of our capital enables us to capitalise on the opportunities we see for further growth and value creation.
“Reflecting the strength of our financial performance, the positive underlying momentum in our business as well as the positive contribution from recent portfolio activity, we are raising our guidance and remain well positioned to deliver another record year in 2024.”