Revenue Essentially Flat for Forterra in 2016
Sales volumes of brick, aggregate blocks and precast concrete products were all ahead of 2015.
Forterra plc recently announced its results for the year ended December 31, 2016. Revenue of £294.5 million (approximately $365.7 million) was 1.5% ahead of 2015, reflecting a strong performance in the second half as volumes to housebuilders continued at a good rate and the destocking in the supply chain at merchants and distributors eased toward the end of the year. Sales volumes of brick, aggregate blocks and precast concrete products were all ahead of 2015. The group achieved low-single-digit price increases at the start of 2016 as anticipated, but relatively higher sales of some of the lower priced products in the range to volume housebuilders led to an adverse mix variance.
In October 2016, the group completed the sale of its Structherm subsidiary in order to focus on improving and growing the core businesses of brick, blocks, and other concrete and clay building products. Structherm manufactures structural external wall insulation solutions for residential buildings.
“Our first annual results as a listed company show good progress in the delivery of our strategy,” said Stephen Harrison, CEO. “2017 has started well, building on the momentum seen in the second half of 2016, with brick volumes for the first two months ahead of last year. The group continues to see strong activity levels from the major housebuilders and positive indications from these customers for at least the first half of the year. It appears that the destocking in the builders merchants’ supply chain is now largely complete. As anticipated, price increases for the year have now been agreed with most customers in order to cover the increases in the cost base.
“Based on our order book and current levels of activity, the outlook for the first half of the year is good. We have less visibility for the second half of the year, however we anticipate a more balanced outcome between the first and second halves than in 2016. At this stage, we expect to make progress through 2017 and our expectations for the full year are unchanged. The board remains confident that the business is well-positioned to take advantage of the attractive market fundamentals and of its ability to increase shareholder value.”
For additional information, visit www.forterraplc.co.uk.