22nd Oct 2021 09:39
(Alliance News) - SIG PLC on Friday said its sales increased in the third quarter, as the building materials firm weathers inflationary and supply chain pressures.
In the third quarter of 2021, sales rose 17% year-on-year on a like-for-like basis. Although the annual climb slowed from 33% in first half, SIG noted like-for-like sales growth accelerated when compared to pre-Covid times.
Third quarter sales rose 9% on a like-for-like basis compared to two years earlier, following 1% growth in the first half.
SIG said: "UK Distribution performance provided the principal driver for the acceleration in growth during Q3, with the business moving, as expected, back to growth against 2019 monthly comparators, as the strategic and operational changes made since July 2020 continue to drive the return towards its previous market position and performance. Our France and UK Exteriors businesses, and our Poland business, continue to perform very strongly.
"Ireland was, as anticipated, a further driver for the Q3 acceleration, rebounding after the H1 impact of local Covid-related restrictions. As previously reported, inflation is also adding to the top line in all geographies, with the group continuing to pass through cost increases. Profitability continued to improve in the quarter compared to the first half, despite the typical modest seasonal dip in sales volumes in August."
The company expects its full-year underlying operating profit to top market current market forecasts.
"Whilst supply issues persist across many product groups, order books continue to build and the outlook for materials shortages has become clearer. We are mindful of the potential impact of these shortages should the situation persist for an extended period, but remain highly confident in the effectiveness of our supply chain management and commercial agility," SIG said.
Shares in the company were 4.6% higher at 48.46 pence each in London on Friday morning.
By Eric Cunha; [email protected]
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