CRH has forecast core profit growth of 6% to 10% in 2024 after the largest building materials producer in the US and Europe today posted 15% growth for 2023, topping its guidance.
The Dublin-based group, which makes about 75% of its profits in the US, expects full-year adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of between $6.55 billion and $6.85 billion this year.
It posted an adjusted EBITDA of $6.2 billion for 2023, or $6.5 billion using the International Financial Reporting Standards, which was ahead of its guidance of $6.3 billion under IFRS in November.
CRH has transitioned to the US GAAP reporting standard as part of its move to the New York Stock Exchange last September.
It said it expects a favourable market backdrop and continued price increases in 2024, driven by significant infrastructure investment and increased "reshoring" of manufacturing activity across its markets in North America and Europe.
CRH said that revenues rose by 7% to $34.9 billion from $32.7 billion in 2022, while its adjusted EBITDA increased by 15% to $6.2 billion from $5.4 billion the previous year.
Dublin-based CRH said that during the year it had invested $0.7 billion in 22 strategic bolt-on acquisitions amid what it called "a robust pipeline of opportunities".
Albert Manifold, CRH's chief executive, said that 2023 was another record year of financial delivery for the company, supported by good underlying demand across its key end-use markets, further pricing progress and the continued benefits of its differentiated, customer-focused strategy.
"Despite continued inflationary cost pressures during 2023 we expanded our margins and delivered further growth in profits, cash generation and returns," the CEO said.
"The strength of our balance sheet together with our relentless focus on the efficient allocation of capital enables us to capitalise on the opportunities we see for further growth and value creation in 2024 and beyond," he added.
Breaking down its divisions, CRH said that total revenues in its Americas Materials Solutions' unit were 8% ahead of 2022, mainly driven by price increases across all lines of business.
Adjusted EBITDA was 16% ahead, it added, as good commercial management offset the impact of higher input costs.
Its Americas Building Solutions delivered a positive performance with total revenues 13% ahead of 2022, led by price improvements across both Building & Infrastructure Solutions and Outdoor Living Solutions as well as contributions from acquisitions.
Adjusted EBITDA in the division was 18% ahead supported by price progression and operational efficiencies along with strong performances from recent acquisitions.
Meanwhile, Europe Materials Solutions benefited from continued pricing progress which more than offset the impact of lower activity levels, resulting in total revenues 4% ahead of 2022.
Adjusted EBITDA was 17% ahead, driven by commercial excellence measures along with a continued focus on cost management.
But its Europe Building Solutions' total revenues were 2% behind 2022, as positive pricing was offset by subdued demand in new-build residential markets.
Adjusted EBITDA in the divison was also 17% behind as a result of lower activity levels, partially offset by cost saving actions, CRH added.
