Half Year 2024 Breedon Group PLC Earnings Call Transcript
Key Points
- Breedon Group PLC (LSE:BREE) delivered a resilient performance despite challenging market conditions in Great Britain (GB) and adverse weather.
- Strong performance in Ireland and a positive maiden contribution from the US business helped offset GB weakness.
- The company successfully entered the US market through the acquisition of BMC, which has already made a positive contribution.
- Breedon Group PLC (LSE:BREE) continued to strategically invest for growth, completing three acquisitions and continuing organic investments.
- The company maintained a disciplined focus on operational excellence and self-help, which helped mitigate some of the adverse impacts.
- Market conditions in GB weakened further in the first half, impacting construction activity.
- Revenue on a like-for-like basis contracted by 6%, reflecting the challenging GB market.
- The company experienced a modest free cash outflow in the period, and indebtedness at the half-year mark was significantly higher due to the BMC acquisition.
- Volumes in GB were down, with aggregates and asphalt down 4%, cement down 12%, and ready-mixed concrete volumes significantly impacted by GB market conditions and weather, down 18%.
- The company's post-tax return on invested capital was impacted by short-term dilution from the BMC acquisition and further increases in corporate tax rates.
Good morning, everybody. It's great to see so many people here today, must be the most people we've had in this room for the three and four years now. So welcome everyone. James and I will take about 20 minutes or so to guide you through our presentation, and then open things up for questions.
I'm pleased to report that we've delivered another resilient performance against the backdrop of a challenging GB markets and wet weather across the Group. A strong performance in Ireland and a positive maiden contribution from our US business offset the GB weakness and ensured we delivered positive earnings momentum.
For my team to deliver such a resilient performance given the challenging GB market conditions we have faced is an incredible achievement and I'm truly proud of what they've achieved and thank them for their efforts.
So what has contributed to our performance? I would highlight five things. Firstly, market conditions in the first half weakened further in GB and construction activity across the
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
