The spiralling costs of building products and materials may be impacting on buyers, but leading suppliers are continuing to make strong profits.
CRH Group, the Dublin-based parent company of Tarmac and Farrans Construction in the UK, made more than a billion pounds in pre-tax profit in the first half of the year.
For the six months to 30th June 2022 CRH group sales of US $15.0bn were 14% ahead of the same period last year and 12% ahead on a like-for-like basis.
Profit before tax on continuing operations was up 29% to $1,203m (£1,015m).
CRH is in 28 countries around the world and says it is the largest building materials business in both North America and Europe.
UK & Ireland first-half sales were well ahead of prior year. In the UK, price increases were implemented across all products, with increased activity levels also benefiting sales, the company said.
Ebitda of $2.2bn was 21% ahead of 2021, “reflecting a strong focus on commercial and operational initiatives which more than offset the impact of cost inflation”. On a like-for-like basis Ebitda was 13% ahead and margins were maintained or expanded across all divisions, it said.
In February this year CRH sold its Building Envelope business to KPS Capital Partners for $3.8bn. In June it acquired US fencing manufacturer Barrette Outdoor Living for $1.9bn.
Chief executive Albert Manifold said: “CRH has delivered another strong performance with further growth in sales, Ebitda and margin despite a challenging and volatile cost environment. This performance reflects the continued execution of our integrated and sustainable solutions strategy. 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.”
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