CRH revenues rise as strong NA growth offsets weakness in Europe
CRH (CDI)
6,436.00p
16:44 20/05/24
London-listed shares in CRH rose on Friday after the builders' merchant said it made a solid start to 2024 in the seasonally least significant quarter, with revenues rising on the back of positive pricing, early-season activity and favourable weather in key markets.
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The company reaffirmed its previous guidance for 2024, saying it expects a "favourable market backdrop and continued positive pricing momentum" during the year.
The Dublin-based firm, which offers building materials across North America, Europe and some parts of Asia Pacific, said revenues over the first three months of the year were up 2% on last year at $6.5bn, rising 1% on an organic basis.
Materials Solutions and Building Solutions revenues were up 16% and 2% in North America respectively; but fell by 8% and 10% in Europe, respectively, held back by bad winter weather.
Group net income rose to $114m compared with a loss of $31m the year before, helped by a gain on the completion of phases one and two of the European Lime divestiture.
Adjusted EBITDA came in at $445m, up 15% year-on-year, "as a result of the continued delivery of our integrated solutions strategy, strong commercial progress, ongoing cost control and further operational efficiencies".
Looking ahead, CRH said it remains well positive for "another year of growth" in 2024. In Europe in particular, the company expects good underlying demand in infrastructure and key non-residential markets, helped by cost control.
UK-listed CRH shares were up 3.5% at 6,670p by 0841 BST.