CRH PLC (LSE:CRH) expects profits in the second half of 2021 to be ahead of the same period last year after a “positive first-half performance”.
The builders’ merchant saw revenue rise to US$14,044mln in the first half of 2021 from US$12,215mln in the same period of 2020. On a like-for-like basis, sales were up 10% year-on-year, although the group reminded investors that the second quarter of last year was heavily affected by the pandemic.
Profit before tax doubled to US$1,046mln from the previous year’s US$518mln, paving the way for a 4.5% increase in the interim dividend to 23 cents. First-half EBITDA (underlying earnings) was 19% ahead on a like-for-like basis and margin expansion was delivered across all three of the group's divisions.
For the second half of the year, CRH’s Americas Materials Division is expected to continue to benefit from an improving economic backdrop and good underlying demand.
The group said it has been further encouraged by the progress being made in relation to infrastructure funding negotiations in the US.
In the Europe Materials division, it expects solid construction demand in its key markets against a backdrop of a strong prior year comparative. Its Building Products Division is expected to continue to benefit from positive residential demand, with early signs of recovery in non-residential activity.
"I am pleased to report a good first half as the strength and resilience of our business model once again delivers superior performance for CRH. Our integrated and solutions-focused approach leaves us uniquely positioned for the changing needs of construction, while our continued strong cash generation provides us with the flexibility to invest in future growth opportunities for our business,” said Albert Manifold, the chief executive of CRH.
“Based on current trading conditions and the positive momentum that we see across our markets, we expect second-half group EBITDA to be ahead of a record prior year,” he added.