Full Year 2024 Ibstock PLC Earnings Call Transcript
Key Points
- Ibstock PLC (FRA:2I5) delivered a resilient performance in 2024, with adjusted EBITDA in line with expectations despite challenging market conditions.
- The company saw a progressive improvement in demand throughout the year, with second-half revenues surpassing both the first half of 2024 and the same period in 2023.
- New product development was a significant strength, with revenues from new and sustainable products increasing to 22% from 11% in 2023.
- The major organic growth program, including the wire cut brick factory at Atlas, is nearing completion, providing lower-cost efficient capacity for future market recovery.
- Ibstock PLC (FRA:2I5) maintains a robust balance sheet, with positive cash flows and a leverage ratio of 1.8 times, indicating financial stability.
- Revenues decreased by 10% to GBP366 million, primarily due to lower sales volumes in the core business during the first half of the year.
- Adjusted EBITDA fell by 26% to GBP79 million, reflecting the impact of lower volumes and reduced factory network utilization.
- The full-year dividend was reduced to 4.0p from 7p in the prior year, representing 52% of adjusted 2024 earnings per share.
- The Clay division faced challenges with lower volumes and weaker sales mix, impacting overall performance.
- Market conditions remain subdued, with housing starts in 2024 significantly below previous years, affecting demand in the construction sector.
Right, well, good morning and welcome to the 2024 full year results presentation for Ibstock PLC. With me as usual today is our CFO Chris McLeish. So let's start with the agenda. After my initial overview, Chris will walk us through the financials and cover divisional performance, after which I will provide a market update and talk about the strategic progress we have made over the course of 2024. Having covered the outlook, Chris and I would be very happy to, as usual, answer all of your questions.
So turning first to the overview, I'm really pleased to say that we delivered a resilient performance in 2024 against a challenging backdrop with adjusted EBITDA in line with our expectations.
Demand improved progressively during the year with revenues in the second half of half of 2024 ahead of both the first half and the equivalent period in 2023. The effective management of pricing and volumes throughout the 2024 year enabled us to deliver resilient margins combined with share gains towards the latter part of the year.
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