Dramatic sales drop at brickmaker as demand weakens

Foterra, the Northamptonshire brickmaker, saw sales plummet by a quarter in 2023, it said in a trading update on Wednesday (January 24).

Revenue fell to around £345m last year, down from £455m in 2022. Forterra said that, despite lower sales, it increased the price of its products to offset an even worse performance and will continue with this strategy in 2024.

The company mothballed two of its plants and made job cuts, saying the actions would save it over £20m.

In a statement, Forterra said: “The outlook for our industry remains subject to considerable uncertainty and, with a general election expected in 2024, demand is anticipated to remain subdued in the near term.

“However, with the long term under supply of housing in the UK continuing to worsen, and UK brick despatches now running at levels last seen in 2009, the board remains confident in the group’s ability to benefit as our key markets recover.”