Irish building materials leader CRH has reported a "positive" first-half performance, with annual growth in sales, earnings and margin despite inflationary headwinds.

The firm recorded sales of $15bn during the first six months of 2022, an increase of 14% from $13.2bn a year prior, while earnings rose 21% from $1.8bn to $2.2bn at a margin of 14.7% (up 90 basis points) or $1.21 per share.

Like-for-like sales in the company's Americas materials division rose 12% compared to the first half of 2021, but revenues were also bolstered by price increases across all product categories.

CRH's building products business, meanwhile, benefitted from good residential repair, maintenance and improvement (RMI) and utility infrastructure activity in North America and Europe, together with price increases and an 11% improvement in like-for-like sales.

The company also increased prices in its Europe materials division, which saw stronger demand in key markets, resulting in an increase of 14% in like-for-like sales.

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Albert Manifold, CEO of CRH, said the "strong performance" reflected the company's continued execution of its integrated and sustainable solutions strategy in the face of "a challenging and volatile cost environment."

"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," he added.

So far this year, CRH has spent $2.8bn on acquisitions, including its $1.9bn takeover of North American fencing and railing provider Barrette Outdoor Living.

The company said it had reallocated the $3.8bn in funds earned from its North American glass business, Oldcastle Building Envelope, in an "efficient and disciplined" fashion, and that its strong balance sheet gave the firm significant options for "future value creation".

CRH has decided to increase its interim dividend to 24 cents per share, an increase of 4% from the same period last year.

The group recently completed the most recent tranche of its share buyback programme in June, repurchasing $600m of shares in the first half of the year, with a further $300m to be reabsorbed by the end of September.

Looking ahead, the company expects further challenges from inflation but remains confidence into its underlying demand and commercial and operational initiatives.

The firm expects its building products business to benefit from RUI demand, and that recent acquisitions will have a positive impact on its bottom line, but its Europe materials division could suffer from economic uncertainty and geopolitical tensions.

CRH forecast earnings for the full year of $5.5bn, which would be a 10% improvement from the $5bn it made in 2021.

Photo: Albert Manifold. (Pic: Sam Boal/RollingNews.ie)