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Price Increases for Bricks | BUILDING MAGAZINE

Price Increases for Bricks

Forterra Brick producer has increased the price of its bricks by more than 10% in the past month and further increases are expected.

Forterra plc said in a trading statement that the sudden increase in energy costs in the fourth quarter of 2021, on top of other rising overheads during the year, had unfortunately made it necessary to increase its prices.

What are described as “significant double digit price selling increases” across key products have been introduced in recent weeks. The company said management are continuing to review the cost landscape before determining when further price increases will be applied.

Full year brick sales volumes for 2021 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.

Full year revenue is expected to reach £370m, which is 27% up on 2020’s £291.9m but 3% down on 2019’s £380.0m.

Since 2019 however, Forterra has closed its Bison hollowcore flooring plant in Derbyshire, Brick and block revenues were up 7% on 2019.

Forterra’s expectations for 2021 remain unchanged with the benefit of greater than expected sales volumes offset by the effects of cost inflation.

Forterra (formerly Hanson Brick) brands include London Brick, Butterley, Thermalite and Bison.

Stephen Harrison, Chief executive, said: “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. However, we remain watchful of further inflationary cost pressures, and will apply further price increases if necessary”.

“The continued strength of demand for our products bodes well, with customers already keen to secure supply ahead of the 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”.