Materials firm Breedon Group has mitigated the impact of lower sales volumes through its pricing strategy.
The UK, Ireland and US-based company said in a trading statement this morning (24 April) that sales volumes were down 9 per cent in the first quarter of this year when compared with the same period last year.
It blamed reduced construction activity due to wet weather conditions, especially in Britain, as well as macroeconomic uncertainty.
These were “partially offset by resilient pricing”, the statement added.
Breedon Group’s overall revenue was down 5 per cent in the period. Acquisitions including asphalt plant Eco-Asphalt and Phoenix Surfacing also stopped it falling further.
Chief executive Rob Wood said the company’s first-quarter performance showed it was making progress.
“While there were fewer trading days due to the timing of Easter, and it was impacted by exceptionally wet weather, seasonally it is the least significant trading period for Breedon and our industry,” he said.
“We have laid good foundations for the remainder of the year: progressing pricing, pursuing efficiencies, completing two bolt-on acquisitions and launching our third platform by entering the US market.”
Expectations for 2024 remain unchanged. It is due to announce interim results for the first half of the year in July.
The group turned over £1.49bn in 2023, marking a 7 per cent increase on the previous year’s £1.39bn, which itself was up 13 per cent on 2021.
In 2023 it posted a £134.4m pre-tax profit, down slightly from £135.8m the year before.
The latest update from the Construction Leadership Council’s material supply group, released last month, said prices had increased 3-4 per cent across the sector, mirroring UK inflation levels.
