By SIG, the U.K.-based building-materials supplier, remains confident in its performance for 2023, anticipating its underlying profit to meet the upper end of their guidance range. While the company experienced a slight decline in like-for-like revenue, it expects its underlying operating profit to be between £50 million and £55 million ($63.7 million-$70.1 million).
The reported revenue for SIG increased by 1% to £2.76 billion, primarily due to acquisitions and favorable foreign-exchange conditions. However, on a like-for-like basis, there was a 2% decrease in revenue as market conditions became more challenging throughout the year.
Despite the softening of demand in most geographic markets during the second half of the year, SIG credits the execution of its commercial strategy for benefiting the company. Furthermore, restructuring and productivity initiatives completed in the same period will generate approximately £10 million of annual cost-savings, with the majority expected to be realized from 2024 onward.
Looking ahead, SIG acknowledges the likelihood of continued market challenges in 2024 but expresses confidence in its ability to navigate this phase of the cycle. The company remains committed to strengthening its operations and capitalizing on future opportunities as the markets recover.
Chief Executive of SIG, Gavin Slark, stated, “Whilst we expect continued softness in market conditions in 2024, we are confident in our ability to manage through this current phase of the cycle and to continue to strengthen our operations, ready to take advantage of the significant long-term opportunities for the Group as markets recover.”
Comments