Breedon Group reports revenue of GBP671m in 1H22

Breedon Goup's interim 2022 results saw revenue reach GBP671.1m (US$809.1m) up 12 per cent from GBP600.9m in 1H21. EBIT totalled GBP65.5m, up 22 per cent from GBP53.7m, and profit before tax totalled GBP59.5m, up 29 per cent from GBP46.2m.

Breedon explained that approximately 20 per cent of the group’s revenue originates from residential construction where housing markets in both GB and Ireland are structurally under-invested and have robust order books. The industrial sector also offers opportunities for growth, driven by the sustainability agenda. “As a consequence, Breedon’s customers’ primary focus has been on securing supply of key construction materials, enabling us to recover rapidly rising input costs in full, “ said Breedon’s statement.

Cement market conditions remained favourable and volumes were sustained at 1.2Mt as in 2021. By contrast, aggregates volumes reduced nine per cent to 13.6Mt when compared to the 1H21 (15Mt) which benefitted from a post-lockdown upturn. Downstream, asphalt volumes were relatively stable at 1.9Mt, while ready-mixed concrete volumes of 1.5Mm³ fell from 1.7Mm³ recorded in 2021, reflecting the effect of plant closures carried out in the 2H21 to drive efficiencies. 

Revenue from cement in 1H22 totalled GBP150.1m compared to GBP120m in 1H221, up 25 per cent. Both cement plants maintained exceptional performance levels, recording kiln reliability in excess of 96 per cent. Non-fossil fuel usage increased, nearing a blended 50 per cent during the period with Kinnegad recording a record peak of 85 per cent. Kinnegad already generates approximately 50 per cent of its revenue from reduced clinker content materials while GB is accelerating efforts in anticipation of changes to British concrete standards.

In addition to seeking solutions to minimise process emissions, Breedon is working to pursue carbon abatement strategies and is actively engaged in the HyNet industrial decarbonisation, carbon capture and storage project, as a member of the Peak Cluster. This pioneering infrastructure project will facilitate the capture, transport and storage of CO₂ emissions.

Breedon states the cement outlook is encouraging. “Enquiry levels are high and demand for materials is resilient. While input cost pressures remain persistent, market conditions are supportive and we expect price rises will fully recover cost inflation,” a company statement said.