First Quarter Trading Update
Q1 sales volumes and revenues ahead of prior year as new build residential demand improves; margins pressured by mix and cost inflation.
vs expectations: in line with expectations
- Q1 sales volumes and revenues vs prior year well above prior year
- Q1 EBITDA margin vs prior year below prior year
- Atlas production volumes increasing in line with expectations
- Nostell Phase 2 ceramic facades factory on schedule for commissioning by year-end
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Ibstock Plc ("Ibstock" or the "Group"), a leading UK manufacturer of a range of building products and solutions, today issues a trading update for the first quarter of 2025.
Trading Update
Trading conditions improved in the first quarter compared to the prior year period, reflecting increased demand in new build residential construction markets and a relatively weak comparative in 2024. Against this backdrop, sales volumes and revenues across the core business were in line with our expectations and well above the prior year.
Whilst we have seen a more competitive pricing environment in some areas of the market, we continue to take a disciplined approach to pricing. We have started to capture the benefit of price increases initiated towards the end of the first quarter although, with market recovery more pronounced in new build residential markets, selling prices in the period were adversely impacted by sales mix.
As expected, the overall EBITDA margin percentage in Q1 was below the prior year, reflecting the impact of cost inflation ahead of pricing actions taken, sales mix and additional costs invested in our factory network to support customer requirements.
Progress on our key organic growth projects remains on track, with production volumes at Atlas increasing during the period in line with our expectations. Building on the successful completion of Phase 1 of our slips investment at Nostell, good progress is being made with Phase 2, the construction of a larger ceramic facades systems factory, which remains on schedule for commissioning by year-end. These projects, together with the significant investment in our core business over recent years, leave the Group well positioned to support the significant unmet demand for new build housing in the UK.
Whilst we remain mindful of broader macroeconomic uncertainties, our full year expectations are unchanged, with performance, as anticipated, weighted towards the second half.
Joe Hudson, CEO of Ibstock Plc, said:
"The Group has made a solid start to the year against a backdrop of improving market conditions. Sales volumes in the core business were well ahead in the first quarter, reflecting improved demand but also a relatively weak comparative in 2024. We continue to maintain both a tight focus on costs and our disciplined approach to pricing.
"We continue to expect trading momentum to build through the year and have made targeted investment in our network to ensure we can service our customers' needs. With our growth projects on track, and having completed a programme of investment in our factory network over recent years, we remain well-placed to respond to the significant unmet demand for new homes in the UK."
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