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(Alliance News) - Zotefoams PLC on Tuesday said strong sales growth drove its half year profit and revenue and is on track to meet market consensus.
The Croydon, England-based cellular material technology producer said for the six months ended June 30, pretax profit grew by 30% GBP7.4 million from GBP5.7 million a year prior, as revenue rose by 9.5% to GBP64.6 million from GBP59.0 million the year before.
This was driven by pricing initiatives and product mix, as well as foreign exchange rates which accounted for 5% of revenue growth, Zotefoams said. Also, high-performance products sales were up 11% to GBP26.4 million from GBP23.7 million a year ago, and polyolefin foams sales grew by 10% to GBP37.7 million from GBP34.3 million.
Zotefoams upped its interim dividend by 4.6% to 2.28 pence per share from 2.18p per share in the first half of 2022.
Looking ahead, the company said its short-term outlook for the remainder of the year is "somewhat tempered by market expectations of squeezed consumer spending and industrial deflation, resulting in inventory reductions in some of our markets."
Nevertheless, Zotefoams said energy and polymer input costs will be be more beneficial, while the US dollar, at a current rate of around USD1.28, will provide a "headwind to profitability" for the rest of the year.
The company added it is on track to deliver its full year results in line with market expectations.
Shares in Zotefoams were down 2.9% at 374.00 pence each in London on Tuesday morning.
By Sabrina Penty, Alliance News reporter
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