SIG posts drop in sales amid 'challenging' markets
Building products supplier reported a drop in sales on Thursday amid continued "challenging" market conditions.
In an update for the period from 1 January to 30 April, the company said group like-for-like sales fell 6% to £873m, reflecting both volume and price reductions. Reported group revenues were also 6% lower during the period.
SIG said it continues to perform well relative to its markets and has been effective in executing its strategic initiatives to drive cost savings and productivity, all of which are helping mitigate demand headwinds.
The company said weak demand was a factor in all of its markets.
"Encouragingly, the benefit of ongoing commercial and modernisation initiatives is enabling most of our businesses to outperform local markets, with particularly strong relative performance in UK Exteriors, Germany and Poland. In UK Interiors, two strategic branch closures early in the year affected the LFL growth by about 3% in the period," it said.
The outlook for 2024 was unchanged, with an expectation of a second half weighting.
Chief executive Gavin Slark said: "The actions we are taking now to improve the productivity and cost structure of our operations, during this period of weak demand, will enhance our ability to deliver value as markets recover. In addition, we are taking the opportunity to implement actions to drive a more profitable sales mix, with greater focus on specialisation.
"Whilst conditions are likely to remain a headwind in the short term, our operational agility and discipline is enabling the business to respond effectively, and we are committed to implementing the strategic steps that will drive long term value creation."
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