21st Jan 2022 10:39
(Alliance News) - Eurocell PLC announced on Friday that it expects its full-year profit to be ahead of expectations thanks to strong sales supported by good underlying demand and effective actions on inflation and supply chain challenges.
The Derbyshire, England-based manufacturer, recycler, and distributor of window, door and roofline PVC products had previously expected pretax profit of GBP26.5 million in 2021.
Eurocell said that group sales in the second half of the year were up 7% compared to GBP93.6 million in 2020. In 2021, as a whole, group sales were GBP343 million, up 33% from GBP258 million in the previous year.
Within its Profiles division, annual sales growth stood at 41% when compared to 2020. Eurocell cited a very strong performance from Vista doors for the growth.
In its Building Plastics division, annual sales growth was 28%, driven by a good performance across its range of own-manufactured products and traded goods as well as sharp growth in its outdoor living products, Eurocell explained.
The company added that it has continued to secure the raw materials it requires and expects past constraints to ease over the coming months. It said it has also mitigated raw material cost inflation with selling price increases and surcharges.
Looking forward, Eurocell said it intends to add a further five new extrusion lines to its manufacturing capacity in 2022. The company said this investment would increase extrusion capacity by more than 15% and help to enable future sales and market share growth.
Eurocell said it expects to publish its 2021 results on March 18.
Shares in Eurocell were up 0.7% at 258.80 pence on Friday morning in London.
By Heather Rydings; [email protected]
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