Summit Materials posts 3% improvement in revenue

US-based Summit Materials has announced its third quarter results for 2021, recording an 18.2 per cent YoY decrease in net income to US$74.2m from US$90.7m in the year-ago period.

However, net revenue improved 2.6 per cent to US$662.3m from US$645.2m in the 3Q20, supported by higher aggregates, ready-mix concrete and cement revenue on continued favourable market demand conditions and price growth in all lines of business, according to a statement. Adjusted EBITDA also increased 7.3 per cent to US$190.3m from US$177.3m in the July-September quarter of last year.

“Summit is currently progressing several strategic divestitures in addition to the five divestitures that were already completed in the first half of 2021. We believe Summit's organic growth profile and asset light conversion model position the company to absorb the impact of the foregone contribution from those divested businesses. When comparing 2020 to 2021, it's also important to understand that 2020 included 53 reporting weeks, while 2021 is a standard 52-week reporting year. In consideration of factors such as those, we are leaving our full year-2021 adjusted EBITDA guidance unchanged," said Anne Noonan, CEO.