Breedon reports uptick in revenue in 1H24

Breedon Group has announced underlying revenue of GBP764.6m (US$985.9m) in the first half of 2024, up three per cent from GBP742.7m in the same period a year earlier. According to the company, this has been supported by its entry into the US. Underlying EBITDA over the same time frame has advanced five per cent to GBP118.1m, while the EBITDA margin has risen slightly from 15.1 per cent in the 1H23 to 15.4 per cent in the same period a year later. Underlying profit before tax has declined six per cent YoY, coming in at GBP61.2m in the opening half of 2024. 

Revenue in Great Britain in the 1H24 fell five per cent YoY with a modest price progression being partially offset by declining volumes on the back of a challenging market. Meanwhile, in Ireland, Breedon reported a strong performance with underlying EBIT improving by 37 per cent YoY due to a successful tendering season and healthy order book on the back of growing construction activity. The group’s underlying EBIT margin from its cement business improved to 15.2 per cent with softer volumes offset by resilient pricing, lower energy costs and an increased provision of lower clinker content cement. 

“For the team to deliver such a resilient performance given the challenging GB market conditions we have faced is an incredible achievement,” said Rob Wood, CEO, Breedon Group. “We achieved a major strategic objective in March, entering the US and establishing our third platform with the transformative acquisition of BMC, creating the foundation from which we will build out our US business.

"We expanded our routes to market, delivering two bolt-on transactions in GB, and growing organically through our downstream businesses, pulling through more of our own material. We moved our sustainable growth strategy forward on all fronts in the first half of 2024 and were pleased to see this recognised by CDP with our first ratings placing us at the forefront of our sector for Climate Change and Water Security.”

Looking ahead to 2025, the group expects growth in all of its markets as the economic and political landscape stabilises. The new UK government’s growth agenda appears to favour the construction market, particularly housebuilding and infrastructure, while a number of high-profile road projects have been secured by the company in the Republic of Ireland. In the US, market fundamentals and long-term growth prospects are underpinned by significant infrastructure and housing deficits alongside healthy state budgets.

“Our healthy balance sheet provides us with the strategic flexibility to invest for growth, maintain our progressive dividend policy and execute bolt-on acquisitions across each platform,” added Breedon.