Forterra hikes brick prices by 10%+
Masonry products giant Forterra has hiked prices for some key products by more than 10% with further increases planned.
In a trading statement to the City this morning Forterra confirmed “significant double digit price selling increases delivered across key products in late 2021/January 2022 with management continuing to review the cost landscape before determining when further price increases will be applied.”
Chief executive Stephen Harrison added: “The strong customer demand seen through 2021 continued up to the end of the year, with 2022 trading continuing where 2021 ended.
“Having successfully delivered sizeable price increases across our product ranges we are confident of delivering meaningful growth in 2022. We remain watchful of further inflationary cost pressures, and we will apply further price increases as necessary.”
Full year brick sales volumes were 33% ahead of 2020 and 1% ahead of 2019. Brick sales volumes in the second half of the year were 5% ahead of 2019 and similar rises were seen in our other core products
Harrison said: “The continued strength of demand for our products bodes well, with customers already keen to secure supply ahead of the commissioning of our new brick factory at Desford later this year. We expect 2022 will be an important year as we prepare for a step change in output and financial performance from early 2023.
“Underpinned by the strength of our cash generation we will continue to invest in new highly efficient and sustainable manufacturing capacity, as we benefit from the shortage of quality housing in the UK and the constrained UK manufacturing capacity for the products needed to increase housing supply.”
Source: Construction Enquirer