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Eurocell lifts FY profit expectations after solid first half
20th Jul 2021 10:50
(Sharecast News) - Window and door manufacturer Eurocell said on Tuesday that full-year pre-tax profit is set to be ahead of market expectations after a better-than-anticipated first-half performance.
Current consensus expectations are for FY profit of £22.8m.
Eurocell said the good performance reported for the first four months of the year has continued in May and June. Reported group sales for the six months to 30 June 2021 were £168m, up 21% on a life-for-like basis compared to 2019 and 34% from 2020.
The performance was underpinned by "strong" demand in the repair, maintenance and improvement (RMI) market.
The company said reported group sales rose 80% compared to 2020, reflecting the impact of the closure of its business from 23 March to mid-May last year due to the Covid pandemic.
Eurocell also highlighted supply chain issues. "As we have previously reported, strong demand in our markets has put sector supply chains under pressure, and this shows no sign of abating.
"We are experiencing tighter supply and an inflationary environment, with prices of certain raw materials, particularly PVC resin, rising significantly in 2021. To date we have secured the raw materials we require, and we are mitigating cost inflation with selling price increases, and for resin, a surcharge adjusted monthly in response to price changes."
Current consensus expectations are for FY profit of £22.8m.
Eurocell said the good performance reported for the first four months of the year has continued in May and June. Reported group sales for the six months to 30 June 2021 were £168m, up 21% on a life-for-like basis compared to 2019 and 34% from 2020.
The performance was underpinned by "strong" demand in the repair, maintenance and improvement (RMI) market.
The company said reported group sales rose 80% compared to 2020, reflecting the impact of the closure of its business from 23 March to mid-May last year due to the Covid pandemic.
Eurocell also highlighted supply chain issues. "As we have previously reported, strong demand in our markets has put sector supply chains under pressure, and this shows no sign of abating.
"We are experiencing tighter supply and an inflationary environment, with prices of certain raw materials, particularly PVC resin, rising significantly in 2021. To date we have secured the raw materials we require, and we are mitigating cost inflation with selling price increases, and for resin, a surcharge adjusted monthly in response to price changes."