Breedon Results Report Record Revenue

BREEDON GROUP plc, UK parent company of Welsh Slate, has announced its full year results were ahead of upgraded expectations for the year ended 31 December 2023.

The company achieved a record revenue increase of 7%, although this was offset by 2% volume reduction “reflecting challenging macroeconomic conditions”.

Breedon says its record underlying earnings before interest and tax (EBIT) are due to a disciplined focus on cost recovery and self-help measures.

In the UK, 2023 revenue was £1.03 bn, up 6% on the previous year, while EBIT shrank by 2%.

The results come as the business announced a third USA acquisition, of BMC Enterprises Inc. in a $300m (£238.1m) deal. BMC is a $178.9 annual turnover supplier of ready-mixed concrete, aggregates and building products headquartered in St Louis, Missouri. Its acquisition gives Breedon another scalable platform in the growing US construction materials market.

Record Revenue

Overall, Breedon’s GB revenue increased 6%; Ireland revenue increased 4%; and the company’s cement sales increased revenue by 10%.

In other metrics, Breedon says its colleagues and contractors were safer on its sites during the year. Group-wide, net zero targets were submitted to the Science Based Targets initiative (SBTi) for formal validation and its first CDP rating was secured.

There were increased sales of lower clinker content cement and alternative fuel substitution was achieved.

The launch of a Peak Cluster carbon capture and storage project also took place during the year.

Breedon says the near-term macroeconomic and geopolitical landscape remains uncertain, however infrastructure and housing end-markets are forecast to return to growth in the medium-term.

Rob Wood, Breedon CEO said: “Breedon has proved itself to be dependable and consistent, regardless of the short-term headwinds. Although the near-term outlook remains uncertain, when I take stock I am reassured.

“The markets we serve, particularly infrastructure and housing, are supported by long-term structural deficits with spending ambitions that are upheld by cross-party government support in the UK and Ireland, where I am further encouraged by the recent progress in Stormont.

“The mineral of which we are stewards is hundreds of millions of years old and securing additional reserves requires careful planning and committed local engagement, something we excel at. We occupy strong and growing market positions and operate a valuable portfolio of integrated assets, delivering essential construction materials to customers who trust us to provide an excellent service.

“We made further progress on our strategic growth priorities in 2023, our vertical model is maturing and provides us with a strong platform for our future growth. Today I am delighted to announce the acquisition of BMC. This transaction will give us a platform that is well-placed to grow in the highly-fragmented US construction market.”

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