CRH profit continues to grow as all divisions improve

CRH posted its full-year results for the 2016 calendar year on Wednesday, with continued profit growth, and margins and returns ahead in all divisions.

The FTSE 100 firm reported “strong” cash generation, with its de-leveraging target exceeded and the balance sheet restored while the dividend was increased.

Sales revenue stood at €27.1bn, 15% ahead of 2015 and up 4% on a proforma basis.

EBITDA improved 41% to €3.1bn, which was ahead of November guidance, while proforma EBITDA was up 10%.

The company’s EBITDA margin of 11.5% was up from 9.4% in 2015.

CRH reported cash inflow of €2.3bn from operating activities, while its return on net assets was up to 9.7% from 7.6% in 2015.

Year-end net debt reduced by €1.3bn to €5.3bn, with the board reporting a net debt-to-EBITDA ratio of 1.7x.

The board confirmed the full year dividend per share had increased by 4% to 65.0c, covered 2.3 times.

“2016 was a year of significant profit growth for CRH, with margins and returns ahead of last year in every division,” said chief executive Albert Manifold.

“We benefited from positive momentum in the Americas, and also in Europe, particularly in the Northern and Eastern regions where we operate.”

Manifold said the board’s focus on cash management resulted in year-end debt metrics ahead of target and below normalised levels.

“In addition to organic growth, we continue to develop CRH through acquisitions, having completed eight transactions already this year.

“With our balanced portfolio of businesses, CRH is well positioned to capitalise on the ongoing economic recovery and we see continued growth for the group in 2017.”