Focusrite warns on EBITDA as shipping and freight costs weigh

28th Aug 2024 10:12

(Sharecast News) - Audio products group Focusrite warned on Wednesday that full-year underlying earnings looked set to slump as global shipping and freight costs weighed on its bottom line.

Focusrite said annual revenues would be around £157.0m, in line with current market expectations, as overall demand "remained resilient" throughout the year ending 31 August.

However, full-year EBITDA was predicted to be roughly £25.0m, a sharp drop from the £38.6m recorded on FY23's revenue of £178.5m, with Focusrite citing ongoing shipping and logistics challenges, as well as mounting pressure on product margins as the cause of much of its woes.

"The group remains well-positioned for future growth, particularly when market conditions in the content creation market improve. Our focus remains on increasing market share, as noted above, delivering new products and making targeted acquisitions. The group looks forward to providing a more detailed update when it announces its final results in late November 2024," said Focusrite.

As of 1010 BST, Focusrite shares had sunk 17.73% to 286.30p.

Reporting by Iain Gilbert at Sharecast.com