Victrex sees softer volumes, weaker end markets in Q1

10th Feb 2023 07:34

(Sharecast News) - Polymer products maker Victrex held full-year guidance but said volumes had been softer during the first quarter with ongoing weakness in several of its end markets as it reported a rise in revenue.

First-quarter group revenue rose 6% to £78.8m with sales volume of 948 tonnes down 8% on the prior year, Vixtrex said on Friday.

"Expectations for the full year are unchanged at this early stage. We are encouraged by modest revenue growth, a better sales mix and improved selling prices. We also continue to make good progress in recovering energy and raw material inflation," said chief executive Jakob Sigurdsson, adding that the macro-economic environment "remains uncertain".

Victrex said the first-quarter performance reflected reduced activity across several industrial end markets, particularly in Europe, together with some normalisation within Value Added Resellers (VAR) after a period of strong growth. The group saw growth in its aerospace and automotive operations, offset by weakness in electronics and energy & industrial.

Its medical division continued to see a good performance, with revenue in the three months to December 31 "strongly ahead" of the comparative period, which included the impact of Covid-19 variants and lockdowns in the US, in Europe and Asia.

Overall, the group saw a steady start, in what is typically the seasonally weakest quarter. Average selling prices (ASP) were ahead of expectations, up 14%, with good momentum from price increases and surcharge pricing.

Reporting by Frank Prenesti for Sharecast.com