25th Aug 2022 17:10
(Alliance News) - Analysts were impressed with building construction firm CRH's interim results on Thursday, with UBS calling it a "sector leading" performance and Davy Research dubbing it as "stand-out".
For the first half of 2022, the Dublin-based firm posted a pretax profit of USD1.20 billion, up 29% compared to USD929 million a year before.
Earnings before interest, tax, depreciation and amortisation rose 21% to USD2.2 billion from USD1.8 billion while revenue grew 14% to USD15.0 billion from USD13.17 billion.
The FTSE 100 constituent attributed its performance to good underlying demand and "commercial progress" in North America and Europe.
Davy Research cited the firm's integrated solutions for its success, however: "Once more, the group's integrated solutions strategy underpinned this impressive out-turn, with CRH clearly benefitting from a differentiated offering – particularly in large-scale complex projects where it can increasingly combine its materials, products and services to add value for customers."
CRH said it would continue to expand these integrated solutions for its customers moving forward. It pinpointed the advancement of circularity in construction and creating new products as particular areas of development.
Chief Executive Albert Manifold was confident for the future: "Looking ahead, despite some continued cost headwinds, the strength of our balance sheet and resilience of our business leaves us well positioned to deliver superior value for all our stakeholders."
Assuming normal weather patterns for the remainder of the year, CRH said it expects annual Ebitda to be in the region of USD5.5 billion, up 10% from USD5.0 billion in 2021.
Davy Research said this was a "relatively conservative" forecast though admitted it was "particularly understandable given the current macro volatility."
AJ Bell's Russ Mould was more confident in the firm: "The company's exposure to big infrastructure projects provides it with some insulation against any economic downturn."
CRH added that its acquisition pipeline remains strong and its "significant" balance sheet capacity provides flexibility to capitalise on opportunities to deliver further value for shareholders.
Shares in CRH closed 3.4% at 3,238.50 pence on Thursday in London, making it the best performer in the FTSE 100. In the year-to-date, the stock was down 19%.
By Heather Rydings; [email protected]
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