Ibstock, the manufacturer of building products, has hailed a “resilient” performance in its third quarter, which it says reflects a “continued focus on customer service and execution, coupled with the disciplined management of capacity and costs.”
Market demand in the period was more subdued than expected, seeing sales volumes below those achieved during the second quarter of the year. Despite these weaker volumes, Ibstock notes effective cost reduction action combined with stable pricing resulted in margins for the quarter remaining robust.
The firm added: “The Board anticipates that the benefits of its actions will continue to mitigate demand weakness in the final quarter and, consequently, its underlying profit expectations for the 2023 financial year are unchanged.”
Joe Hudson, Chief Executive Officer, said: “The Group delivered a resilient performance in the third quarter despite a very challenging market backdrop. I am proud of the way that everyone at Ibstock has remained focused on the delivery of a strong operational performance while also ensuring that the Group made continued strategic progress.
“As macroeconomic conditions stabilise, we expect a recovery in market activity, reflecting the significant underlying demand for new build housing in the UK. Whilst we are taking a cautious view around the pace and timing of this recovery, we remain confident in our ability to continue to respond to market conditions, taking the action necessary to protect performance, while ensuring the business remains well-positioned for an increase in activity.”
