Forterra plans fourth brick price hike in 12 months

Grant Prior 3 years ago
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Masonry products giant Forterra is planning another rise in brick prices in the New Year following its latest price hike of 16.5% in October.

It will be the fourth price increase for the firm’s products in 12 months.

Forterra said trading was currently “robust” with revenue for the ten-month period ended 31 October 2022 up 23% on last time due to higher prices.

In a trading update to the City Forterra said: “Group revenue in the period was 23% ahead of the prior year driven by selling price increases implemented on 1 January, 1 April and, most recently, 1 October when we raised the majority of our brick prices by a further 16.5%.

“We continue to act decisively to recover ongoing cost inflation and we have notified customers of further necessary price increases effective 1 January 2023.”

The company added it had fixed 60% of its gas costs for next year and will construct its new Desford brick factory within the £95m budget “despite the widespread inflationary pressures.”

Stephen Harrison CEO said: “Inventories remain at record low levels and despite the current uncertainties we remain well-placed to mitigate the effects of a softening of demand by substituting imported bricks with domestically manufactured product.”

Harrison is stepping down next April and will be replaced by Neil Ash who is currently head of the Building Performance division at Etex.

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