RE: Fevr26 Jan 2023 09:14
Whilst the numbers were fine, there were negative undertones in the text - something that will worried some investors.
For example - “the widespread industrial action undertaken across the UK rail network in the run up to Christmas had a notable impact on sales in what is traditionally a very strong trading period”. Personally, I find this a weak explanation - I haven't read anywhere else about other companies citing this as having a material impact on trading?
Also – “· However, the impact of elevated European energy costs into glass bottle pricing will be material in 2023. Whilst energy pricing has recently reduced, it remains volatile and at least three times higher than 2021 levels, impacting both the cost of raw materials and the direct energy cost in glass manufacture. As a glass-led business, with c.80% of our sales mix in glass bottles, we are particularly exposed to this significant headwind.”
I read this as getting in an early defence for what may be an downbeat update later this year?
I remain optimistic, primarily because of progress in North America. Hopefully, the BOD will engage someone more experienced to pen the words for the next business update!
GLA
Also – “· However, the impact of elevated European energy costs into glass bottle pricing will be material in 2023. Whilst energy pricing has recently reduced, it remains volatile and at least three times higher than 2021 levels, impacting both the cost of raw materials and the direct energy cost in glass manufacture.
· As a glass-led business, with c.80% of our sales mix in glass bottles, we are particularly exposed to this significant headwind.”
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