23rd Nov 2023 13:24
(Alliance News) - Macfarlane Group PLC on Thursday said it expects 2023 profit to be ahead of last year and in line with its own expectations.
The Glasgow-based supplier of packaging materials expects adjusted pretax profit for 2023 to be ahead of last year; however, revenue in the year-to-date is 2% below the same period last year, with weaker volumes and lower pricing impacting most sectors.
In 2022, Macfarlane reported revenue of GBP290.4 million and pretax profit of GBP19.9 million.
"These impacts are being offset by improved new business performance, effective management of pricing and costs, and the completion of three acquisitions, all of which are performing well," Macfarlane explained.
It said "good" progress is being made in Europe, with a strong contribution from PackMann acquired in May 2022. Macfarlane bought the protective packaging distribution business for EUR8.6 million.
Chair Aleen Gulvanessian said: "In challenging conditions, the performance of the group this year has demonstrated the resilience of our business model and the benefit of effective management actions. The board does not expect trading conditions to substantially improve in the near term and the management team will continue to execute actions to maintain the group's progress."
Shares in Macfarlane were down 0.5% to 109.50 pence each in London on Thursday afternoon.
By Sophie Rose, Alliance News senior reporter
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