CRH buys a business ‘every 8 or 9 days’
CRH will continue an acquisition strategy that saw it buy a business “every eight or nine days” last year, as well as pursuing further share buybacks, management said yesterday.
CRH CEO Albert Manifold said the business is highly cash generative and will use free cash flow for a mix of dividends and share buybacks, bolt-on acquisitions and to invest in organic growth this year.
He said 2019 would be a “year when we consolidate and deliver” rather than target a major acquisition, but added CRH will continue a bolt-on acquisition strategy “focused on filling in the gaps around the business.”
CRH reported record earnings of €3.37bn for 2018 on sales of €26.8bn.
In Europe, like-for-like sales were up 2pc, and rose 4pc in the Americas and Asia in Asia.
CRH generated €2.4bn in cash. Chief financial officer Senan Murphy said that after buying back €800m of shares in 2018, the business will have acquired another €200m of shares by the end of March.
Further buybacks in the rest of 2019 would be “one element” of corporate activity with specific targets likely to be flagged at the start of each quarter, he said.
CRH launched its first share buyback programme in a decade last year. Meanwhile, management said a strategic review of its European Distribution unit would conclude in between six-weeks and six-months, but not necessarily lead to a sale. CRH shares were slightly higher at €27.70 each yesterday.