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CRH ‘pleased’ with good first quarter results

CRH has described its first-quarter results as a ‘solid start’ to the year, which reaffirms its position in the market. 

The construction materials provider described the quarter as the “seasonally least significant period” for the business despite the strong results.  

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

“That performance was supported by positive pricing momentum, early-season project activity, favourable weather in certain regions and the contribution from acquisitions.  

“We believe the strength of our balance sheet together with our relentless focus on the efficient allocation of our capital enables us to capitalise on the opportunities we see for further growth and value creation in 2024 and beyond.  

“Given this backdrop, we are pleased to reaffirm our previous guidance for 2024.”  

The key features from the first quarter for CRH include $2.1bn materials acquisition in Texas complete; $60m run-rate synergies identified. Also included were seven other strategic bolt-on acquisitions completed in the first three months for $0.1bn, a $0.7bn agreement to acquire a majority stake in Adbri in Australia. This quarter also saw proceeds from divestitures of $0.7bn primarily related to the initial phases of the Lime disposal, ongoing share buyback, $0.6bn completed to date in 2024; commencing new $0.3bn quarterly tranche, declaring new quarterly dividend of $0.35 (+5% annualized) payable on June 26, reaffirming FY24 guidance; Net income $3.55bn to $3.80bn; Adjusted EBITDA* $6.55bn to $6.85bn.  

One of the major shifts for CRH was purchasing a majority stake in AdBri in partnership with Barro Group. Given AdBri’s longstanding history in the industry, the deal was a major moment for the Australian aggregate sector.  

The deal was confirmed earlier this year, with CRH claiming a 57 per cent stake in AdBri.  

“Adbri is an attractive business with high-quality assets and leading market positions that complement our core competencies in cement, concrete and aggregates while creating additional opportunities for growth and development for our existing Australian business,” Manifold said at the time. 

“We look forward to working with the Barro family over the coming years to enhance the long-term growth and performance of Adbri.” 

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