Eurocell Updates On Expected Profits Amid Falling Sales -

SALES OF roofline PVC products, windows, and doors have fallen 6% by volume on the year at Eurocell plc.

Reported sales for the year ended 31 December 2023 were £365m, down 4% on an “exceptionally strong” year in 2022, the company reports in an update for the year ended 31 December 2023.

Eurocell Divisions

In Eurocell’s Profiles division, reduced Repair, maintenance and improvement (RMI) activity and a significantly weaker new build market, partially offset by the benefit of market share gains, resulted in sales volumes 7% below 2022. The business says it has continued to acquire new fabricator accounts, following the Duraflex extrusion business closure in September and the administration of Safestyle in October.

In the Building Plastics division, RMI volumes in the branch network were down 5% on 2022 and remain subdued. Increased competition is pressuring margins as sales increase in Eurocell’s made-to-order products.

Persistent input cost inflation H1 2023 were passed on “where possible” and there has been “some easing” of costs in H2, the company reports.

Eurocell says its restructuring programmes implemented in Q4 2022 and Q2 2023, saved £7m in 2023 while redundancy and cloud computing costs in 2023 were approximately £3.5m.

Overall, Eurocell reports that the trends reported at half year in September continued for the remainder of 2023. RMI continues to be impacted by low consumer confidence and higher costs of living. The decline in new build rates reflects interest rate rises and falling house prices.

Despite these challenges, Eurocell anticipates underlying profit before tax for the year to be in line with market expectations.

Review of Strategy

Eurocell’s strategy review, including the optimisation and expansion of the branch network, an enhanced customer proposition and simplified business structures is expected to report conclusions by March at the time of its 2023 full year results.

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