(Alliance News) - Ibstock PLC on Wednesday said it delivered a "resilient" third quarter performance despite "challenging market conditions" and left underlying profit expectations for 2023 unchanged.
The Leicester, England-based maker of clay and concrete building products said market demand in the period was more subdued than expected. As a result, and in line with the wider UK brick industry, sales volumes in the third quarter were below those achieved during the second quarter of the year.
However, Ibstock noted that "effective cost reduction action combined with stable pricing resulted in margins for the quarter remaining robust".
Looking ahead, the company left underlying profit expectations for 2023 unchanged.
Chief Executive Officer Joe Hudson 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."
Shares in Ibstock were down 0.2% at 122.60 pence each in London on Wednesday morning.
By Sabrina Penty, Alliance News reporter
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Ibstock (IBST)