(Sharecast News) - Ibstock said on Thursday that first-quarter EBITDA was marginally ahead of its expectations despite a "subdued" demand environment in both the residential new build and repair, maintenance and improvement (RMI) markets.
In an update ahead of its annual meeting, the clay bricks and concrete products manufacturer said it had made a good start to 2023. It put the better-than-expected EBITDA down to "disciplined management of capacity and cost" and "good commercial execution".
The company also said that while it continues to experience cost inflation, the pace of increase was more modest in the first quarter than in 2022. It has now hedged around 95% of energy requirements for the first half of this year, and around 75% for the full year, albeit at prices higher than last year.
Chief executive Joe Hudson said: "Market conditions were subdued through the early months of 2023, although we expect this to improve as the year progresses.
"Our major organic growth investments remain on track, with our pathfinder factory at Atlas expected to deliver the UK's first carbon neutral verified bricks by the end of the year, and Ibstock Futures continuing to build capability and scale.
"We remain confident in our ability to respond effectively to trading conditions, and to deliver a full year performance in line with market expectations."
Ibstock (IBST)