CRH(CRH)2023-03-09 16:00Financial Performance - Total sales for 2022 reached $32.7 billion, representing a 12% increase compared to 2021[21] - EBITDA for 2022 was $5.6 billion, up 48% from $3.9 billion in 2021[21] - Operating profit increased by 17% to $3.9 billion in 2022, compared to $3.3 billion in 2021[22][23] - Earnings per share rose to $3.50 in 2022, up from $3.06 in 2021[24] - Dividend per share increased to $1.27 in 2022, compared to $1.21 in 2021[30] - Profit after tax for 2022 was $3.9 billion, up from $2.6 billion in 2021, while EBITDA increased to $5.6 billion from $5.0 billion[165] - Operating cash flow for 2022 was $4.0 billion, compared to $4.2 billion in 2021[165] - The company generated a Return on Net Assets (RONA) of 13.3%, which is an increase of 340 basis points since 2018[63] - The company has 22.8 billion tonnes of reserves and $26.8 billion in net debt, indicating strong resource availability and financial positioning[158] Sustainability Initiatives - The company aims for a 30% reduction in absolute carbon emissions by 2030 from a 2021 base year, aligning with its net-zero ambition by 2050[53] - CRH aims to achieve net-zero emissions by 2050, with a target of a 30% reduction in absolute carbon emissions by 2030[88] - The company is focused on low-carbon materials and has over 100 research and innovation projects underway[43][44] - The company is embedding its Purpose into operational and strategic processes to guide organizational culture[83] - The company is committed to zero harm and continues to invest in safety technologies[85] - The company is working towards delivering its sustainability ambitions by 2050, with a focus on circularity and climate resilience[86] - The company is focused on sustainability, including decarbonization, waste recycling, and water conservation, to enhance resilience and create circular supply chains[144] - The company aims to address global challenges such as decarbonization, waste, and water through its new sustainability framework[186] - Eqiom, part of the Europe Materials Division, is involved in constructing the first carbon-free district in Paris, covering approximately 34,000 m² with up to 80% low-carbon concrete, resulting in CO2 savings of approximately 40% overall[200] Strategic Growth and Innovation - The company has allocated approximately 60% of its capital over the last five years to value-accretive acquisitions and internal growth investments, with around 40% returned to shareholders through dividends and share buybacks[62] - The company spent $3.3 billion on acquisitions in 2022, significantly up from $1.5 billion in 2021, including the $2.0 billion acquisition of Barrette Outdoor Living[109] - CRH launched CRH Ventures and an Innovation Fund in 2022 to support sustainable product development[43] - The company is investing $250 million in a venturing and innovation fund to support the development of new technologies and solutions in North America and Europe[55] - The company is focused on operational and commercial excellence programs to build better businesses globally[60] - The company is expanding and building strength through scale and improving business operations[103] - The company is committed to investing in talent and growing skills to drive business performance[100] - The company is focused on developing innovative solutions to meet customer and community demands for sustainable construction[195] Market Position and Demand - CRH has positioned itself in resilient sectors of the construction market, reducing business cyclicality[50] - The company anticipates resilient demand in North America, supported by strong pricing and government funding initiatives in clean energy and manufacturing[125] - Construction demand is driven by significant infrastructure needs and a resurgence in non-residential demand, particularly in the US, where resilient RMI activity is noted in the Northeast and Midwest[131] - In Europe, resilient RMI demand and sustainable construction are observed, particularly in stable Western Europe, alongside significant new build and residential needs[132] - The global population is projected to grow by approximately 2.5 billion by 2050, increasing demand for infrastructure, residential, and commercial projects[135] - The global economy is forecasted to more than double in size by 2050, continuing to drive investment in infrastructure, residential, and commercial projects[139] Safety and Workforce - There were five reportable fatalities in 2022, involving one employee and four contractors, highlighting the company's commitment to safety initiatives[85] - The company employs approximately 75,800 people, highlighting its significant workforce in the construction materials sector[158] - Approximately 2,789 frontline leaders completed leadership training, with 1,300 leaders participating in development programs[178] - The company is addressing labor shortages and wage inflation by investing in technology and digital solutions, creating significant value[156] Customer Focus and Solutions - The company focuses on delivering integrated end-to-end solutions, enhancing customer relationships and increasing customer spend[163] - The focus on customer connectivity aims to create preferred solutions that exceed customer expectations[100] - The company aims to address evolving customer demands for holistic solutions that reduce costs and complexity while improving environmental performance[142] - CRH's solutions strategy leverages scale and deep customer understanding to provide value-added materials and services[177] Regulatory and Environmental Challenges - Climate change and changing customer preferences are driving demand for critical infrastructure and sustainable materials, influencing CRH's strategic direction[153] - Regulatory changes aimed at decarbonizing the industry are stimulating demand for circularity and sustainable materials[156] - The construction sector accounts for approximately 40% of global carbon emissions, primarily from energy used in buildings and material manufacturing[192] - The company recognizes the need to reduce carbon emissions and manage exposure to climate change impacts while providing sustainable solutions[193]