GCISIG holds on to guidance as LFL sales decline eases
Europe-focused building products and specialist insulation supplier has reiterated full-year profit guidance after a sequential improvement in like-for-like revenue performance in the third quarter.
LFL sales were down 4% in the three months to 30 September at £662m, compared with the 7% decline reported in the first half, with nearly all of its businesses seeing an improvement in LFL momentum.
SIG said it still saw weak demand across the majority of its markets due to "ongoing software in the European building and construction sector".
The company, which is currently undergoing restructuring programmes in the UK, Germany and France, strategically closed some branches in the regions during the period, impacting the group LFL performance by 1%.
Meanwhile, deflationary headwinds are said to have moderated further in the third quarter, while the group reported "some encouraging stabilisation in overall volumes, which are down only 1% excluding the branch closure impact".
"The board's expectations for full year underlying operating profit are unchanged and in line with the guidance provided in August, with the benefits from productivity and cost initiatives underpinning this outlook," SIG said.
Company-compiled consensus is pointing to an underlying operating profit of £25.4m for 2024 at the mid-range of forecasts, down from £53.1m in 2023.
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