Breedon records revenue of GBP1396m in 2022
During 2022, Breedon Group Plc grew revenue by 13 per cent to GBP1396.3m (EUR1566.7m/US$1658.4m) in 2022 (2021: GBP1232.5m) and the company’s underlying EBIT rose by 16 per cent to GBP155m (2021: GBP133.6m).
The company completed three strategically significant bolt-on acquisitions and increased its net capital expenditure to GBP102m (2021: GBP71m) as bottlenecks in the supply chain relaxed while reducing Breedon’s Covenant Leverage to 0.7x (2021: 0.8x).
Volumes reduced in the year as expected to more normal levels following exceptional post-COVID demand in 2021 and the moderation of UK economic growth. Cement volumes totalled 2.2Mt down from 2.4Mt in 2021. Cement volumes fell nine per cent during the year, driven primarily by lower concrete volumes and reduced imports. Cement revenue totalled GBP300.7m up 22 per cent from GBP245.6m in 2021. The Hope Cement plant achieved kiln reliability of 96.1 per cent in 2022.
In 2022 both the Kinnegad and Hope cement plants increased fossil fuel replacement, achieving a combined rate nearing 50 per cent alternative fuel utilisation. Hope increased fuel replacement by two percentage points while Kinnegad once more improved its world leading alternative fuel usage to 77 per cent (2021: 75 per cent). Furthermore, CEM II now comprises 50 per cent of Kinnegad sales (2021: 40 per cent) and Breedon expects this contribution will continue to increase. Kinnegad was also granted planning permission for a 17MW solar farm while Hope received the necessary planning consent to start the ARM project in earnest.
Aggregates volumes totalled 26.3Mt, down from 29.2Mt in 2021. Ready-mix volumes slipped to 3Mm3 from 3.3Mm3 in 2021. Asphalt volumes reduced to 3.9Mt from 4.1Mt in 2021.
Published under Cement News