Overall revenues climb at building products group but demand is declining
Elland-based building products giant, Marshalls, says its revenue for the nine months ended 30 September 2022 was £544m (2021: £453m), representing year-on-year growth of 20%.
Within the group, Marshalls Building Products has seen revenue growth of 22% to £149m (2021: £123m) in the nine-month period, with a particularly strong performance from the Bricks & Masonry business.
Demand has remained robust throughout the third quarter, with revenue growth at a similar level to the first half of the year.
Marley, which was acquired by Marshalls in April this year, delivered revenue of £84m in the post-acquisition period, representing growth of 9% compared to the corresponding period in 2021.
However, Marshalls Landscape Products has continued to face tough trading conditions and reported revenue of £311m (2021: £330m) in the nine-month period, a fall of 6%.
The rate of contraction increased in the third quarter to 16% compared to 1% at the half year, due to softening demand for private housing repairs, maintenance and improvements (RMI) in both the UK and international markets and destocking in the distribution channel.
A Marshalls spokesman said: “We continue to effectively mitigate cost inflation through price increases.
“However, taking into account the combined impact of the accelerated rate of revenue contraction in Marshalls Landscape Products in the third quarter and the reduction in efficiency resulting from lower manufacturing output in this reporting segment, the Board now anticipates outturn for the Group as a whole will be slightly below the bottom end of the current range of market expectations.”
Market consensus is £98.5m with a range of £95.1m to £101m.