Robinson sees strong H2 momentum carry over into 2024

9th May 2024 11:46

(Sharecast News) - Plastic and paperboard packaging manufacturer Robinson said on Thursday that momentum experienced in the second half of 2023 has continued into 2024.

Robinson said year-to-date sales volumes were 12% above the same period in 2023, with total revenue 8% ahead of the same period in 2023 after the effect of sales price and foreign exchange movements.

"This sales growth gives us confidence that our approach to partnering with major FMCG brand owners, our investment in new technology and our ability to deliver packaging made from post-consumer recycled material is delivering results. In the first quarter of the year we have made substantial progress towards our target of 30% recycled content in our packaging," said Robinson.

As a result of the higher sales volume, combined with improved gross margins and lower operating costs, the AIM-listed group highlighted that profits were ahead of the first four months in 2023.

"After strong performance in the first four months, the company expects revenue for the 2024 financial year to be ahead of 2023 and current market expectations. With this additional revenue, full-year operating profit (before amortisation of intangible assets and any exceptional items) is expected to be in the region of £3.0m (2023: £2.2m), this being ahead of current market expectations. We remain committed in the medium-term to delivering above-market profitable growth and our target of 6-8% adjusted operating margin," said Robinson.

As of 1145 BST, Robinson shares had surged 20.10% to 120.10p.

Reporting by Iain Gilbert at Sharecast.com