Ireland: CRH’s sales revenue rose by 4% year-on-year to Euro27.1bn in 2016 from Euro23.6bn in 2015. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 41% to Euro3.13bn from Euro2.22bn. The group attributed the growth in sales and profits to positive sales in the Americas and Europe and benefits from its first year of full ownership of some assets purchased from LafargeHolcim in 2015.
"2016 was a year of significant profit growth for CRH, with margins and returns ahead of last year in every division. We benefited from positive momentum in the Americas and also in Europe, particularly in the Northern and Eastern regions where we operate," said chief executive Alfred Manifold.
By region, the group’s Europe Heavyside division reported boosts in sales revenue and operating profits. However, its cement operations grew sales volumes in several countries where it faced price pressure and production overcapacity including Ireland, Spain and France. In Germany the group noted that sales volumes grew in its first full year of full ownership due to growth in residential building but that prices remained under pressure. Weak activity in Poland also affected pricing and reduced sales and operating profits.
Outside of Europe, the Americas Materials division also grew its sales and profits. Demand in North American cement markets increased as declines in Western Canada were offset by increases in Quebec and the US. In Brazil it reported that cement consumption fell by 12% in the southeast region and competition remained high. Finally, the group’s new Asia division said that cement demand grew in 2016 due to the private sector and government infrastructure spending. Its operating profit was also boosted by higher prices and lower input cost, including a lowered price of imported clinker. In China the group said that prices fell by due to a poor construction market and production overcapacity.
