SIG Sees Weak LFL Sales In H1, FY24 Underlying Profit Below Current Analyst Range

(RTTNews) - SIG plc (SHI.L), a specialty building products supplier, Monday said that Group like-for-like or LFL sales in May and June to date declined around 7 percent from the same period last year amid the challenging market conditions. The change is similar to that seen in the first four months of the year, but behind expectations.

For the first half, the Board now expects LFL sales decline of around 7 percent, and an underlying operating profit in the range of 10 million pounds to 12 million pounds.

Looking ahead for the full year, the Board now expects underlying operating profit to be in the range 20 million pounds to 30 million pounds, which is below the current analyst range.

For the year, analyst expectation is underlying operating profit or EBIT of 41.1 million pounds, within a range of 36.7 million pounds to 43.0 million pounds, as of June 21.

The cautious outlook reflects the weaker than expected trading in recent weeks and a consequently more cautious view of the timing of any potential market improvements during the second half.

In its trading update for the year ending December 31 to date, the company said group sales overall were weaker than expected in May and June to date.

The ongoing softness in the building and construction sector has been most notable in the French and German markets, and in the end markets of UK Interiors business. Meanwhile, the firm continues to see more robust demand in Poland, Ireland and UK Exteriors businesses.

The firm continues to perform well relative to its markets and is also continuing to drive cost reductions and efficiency initiatives.

Cash performance to date remains in line with expectations.

The company further said, "Whilst market conditions remaining challenging in a majority of areas, the Board continues to expect its strategic and commercial initiatives to benefit medium term margin and profit growth, also supported by meaningful operating leverage when market volumes recover."

SIG plc is scheduled to publish its first-half results on August 6.