SIG swings to FY pre-tax profit
By Iain Gilbert
Date: Wednesday 08 Mar 2023
(Sharecast News) - Construction products supplier SIG swung to a pre-tax profit in 2022 as pass-through of input cost inflation remained "a strong tailwind" throughout the year.
SIG said on Wednesday that full-year like-for-like sales had grown 17%, with revenues hitting £2.74bn, while underlying operating profits almost doubled to £80.0m.
The London-listed group also stated it had witnessed "good margin progression", with underlying operating profit margins up 110 basis points to 2.9%, and a return to positive free cash flow for the year.
In the first two months of 2023, SIG saw mid-single digit like-for-like revenue growth, with the continued effects of input price inflation "more than offsetting" year-on-year volume declines.
"Market conditions continue to vary across our geographic footprint, but overall we expect weaker demand conditions to prevail during 2023, offset by a continued tailwind from input price inflation, albeit the latter will continue to moderate further this year," it said.
SIG added that Christian Rochat, one of two directors appointed by CD&R Sunshine, does not intend to stand for re-election at the group's annual general meeting. CD&R has informed the firm that it intends to nominate Diego Straziota for appointment to its board.
As of 0950 GMT, SIG shares had slipped 5.12% to 39.85p.
Reporting by Iain Gilbert at Sharecast.com
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