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Brick manufacturer Ibstock has reported a 32% rise in pre-tax profit in the first half of the year, as it increased selling prices to offset cost inflation.

The firm, based in Leicestershire, reported pre-tax profit of 拢51m for the six months to 30 June, up from 拢39m the same period in 2021. It also increased its turnover 28%, from 拢202m to 拢259m over the same period.

Ibstock said it has seen 鈥渟ignificant variable cost inflation鈥� particularly in energy, materials and freight but has been able to fully recover the extra cost through increases in selling prices for its products.

It said: 鈥淪upply chain conditions remained challenging, although the business continued to mitigate these issues effectively with limited impact on operational performance.

鈥淪ignificant inflation across the key variable cost areas of energy, freight, carbon and materials was recovered by selling price increases, with in-year energy price inflation addressed through a dynamic quarterly pricing approach.鈥�

The firm said it now expects to deliver earnings before interest, taxes , depreciation and amortisation (EBITDA) 鈥渕odestly鈥� ahead of expectations for the full year.

>> See also: Who pays for materials price inflation?

Ibstock said it is on track to redevelop and expand its wire-cut clay brick facilities at Aldridge in the west Midlands, with commissioning expected from 2023. It said its new state-of-the-art factory at the site will manufacture the UK鈥檚 first net-zero bricks.

Joe Hudson, chief executive officer, said: 鈥淲e continue to manage inflation and supply chain pressures well and are making good progress with our strategic development plans, with investments in new capacity progressing well.鈥�