TIDMZTF
RNS Number : 7921Z
Zotefoams PLC
26 May 2021
Zotefoams plc
("Zotefoams" or "Group")
Trading Update
26 May 2021 - Zotefoams, a world leader in cellular materials
technology, today provides a trading update for the four months
ended 30 April 2021, ahead of its Annual General Meeting to be held
today at 10am at 675 Mitcham Road, Croydon CR9 3AL.
At this meeting David Stirling, Group CEO of Zotefoams plc, will
make the following statement:
"In line with the Outlook Statement in our 2020 preliminary
results announcement, the first four months of 2021 have seen
strong demand and order intake across most regions and markets.
This resulted in Group revenue for the period being approximately
60% ahead of the comparative period for the previous year
(approximately 14% ahead of the comparative period for 2019),
against an FX headwind of c.3%, with March and April being
consecutive record Group revenues:
-- High-Performance Products (HPP) sales increased by 133%
over 2020 (up 61% v 2019)
- The strong demand in Footwear seen in the second half
of 2020 has continued, with sales at similar levels to
the latter part of last year
- The Group has delivered good growth in some of its newer,
niche segments, although the continued weakness in the
aviation markets has meant that non-footwear ZOTEK(R)
HPP foam sales remain significantly behind pre-COVID levels
- T-FIT(R) insulation product sales grew very strongly in
the period, led by a very good performance in China, while
demand in India and Europe remains constrained by ongoing
COVID-19 impacts
-- Polyolefin Foams sales increased by 32% over 2020 (down
7% v 2019)
- Overall demand was very buoyant, with good recovery in
most markets other than aviation
- Lower January sales, due to Brexit-related uncertainty
at customers, was the principal driver of the overall
lower revenue performance versus a very strong comparative
in 2019
-- MuCell Extrusion sales increased 36% over 2020 (up 76%
v 2019)
- A good start to the year with positive momentum from licence
fees
- Commercial and technical focus is now on ReZorce(R) mono-material
barrier technology
The Group has responded well operationally to this strong
recovery, including commissioning the new Polish facility at the
beginning of this year. Supply chains have been effectively managed
in the period to ensure availability, although we have seen
significant inflationary pressures, particularly in polyolefin raw
materials and freight. Sales price increases have been implemented
to mitigate the impact of all but the peak pricing of freight and
polyolefin raw materials.
As was the case in the second half of last year, we have
continued to increase investment in product and commercial
development initiatives, as demand recovers, in order to support
the returning growth momentum. In particular, we have invested
significantly in the commercialisation of our fully recyclable,
circular, barrier packaging solution ReZorce(R), developed by
MuCell Extrusion LLC. We have made good progress in demonstrating
end of life, recyclability and the low-carbon footprint of this
technology through independent life cycle analysis. Market
positioning and engagement with potential customers has also begun,
with commercial development partners identified. The Board had
previously approved capital expenditure for a pilot extrusion line
and this is now being supplemented by downstream carton-making and
packaging, all due for commissioning in the third quarter this
year, alongside further development of the technology supporting
ReZorce.
Outlook
We have delivered very strong sales growth in the first four
months of the year, despite currency headwinds and the continuing
negative impact of COVID-19 related factors in some markets. We
anticipate this sales momentum to continue, supported by a strong
order book at the end of April, albeit against more challenging
comparatives for the remainder of the year.
While it is still early in the year and we are mindful of the
volatile macroeconomic environment, we anticipate Group revenue to
be significantly ahead of market expectations for the full year,
which will offset the short-term inflationary impacts on margins,
the weaker US dollar and our planned increase in product and
commercial development costs. Consequently, we are comfortable with
current market expectations for growth in profit and reduction in
leverage for the year and remain confident about the long-term
prospects of the business."
Commenting on the update David Stirling, Group CEO of Zotefoams,
said:
"We are greatly encouraged by the excellent start to the year,
particularly the strong growth so far compared with the comparable
period (pre-pandemic) in 2019 and expect full year revenue to be
significantly ahead of market expectations for the full year. Once
again, our business is delivering a robust performance in volatile
economic conditions, led by the contributions of a highly committed
global workforce, and I believe our continuing investments leave us
well placed to support our best growth projects."
- Ends -
Enquiries:
Zotefoams plc +44 (0) 208 664 1600
David Stirling, Group CEO
Gary McGrath, Group CFO
IFC Advisory +44 (0) 203 934 6630
Graham Herring
Tim Metcalfe
Zach Cohen
About Zotefoams plc
Zotefoams plc (LSE - ZTF) is a world leader in cellular
materials technology delivering optimal material solutions for the
benefit of society. Utilising a variety of unique manufacturing
processes, including environmentally friendly nitrogen expansion
for lightweight AZOTE(R) polyolefin and ZOTEK(R) high-performance
foams, Zotefoams sells to diverse markets worldwide. Zotefoams uses
its own cellular materials to manufacture T-FIT(R) advanced
insulation for demanding industrial markets. Zotefoams also owns
and licenses patented microcellular foam technology to reduce
plastic use in extrusion applications and for ReZorce(R)
mono-material recyclable barrier packaging.
Zotefoams is headquartered in Croydon, UK, with additional
manufacturing sites in Kentucky, USA and Brzeg, Poland (foam
manufacture), Oklahoma, USA (foam products manufacture and
conversion), Massachusetts, USA (MuCell Extrusion) and Jiangsu
Province, China (T-FIT).
www.zotefoams.com
AZOTE(R), ZOTEK(R), ReZorce(R) and T-FIT(R) are registered
trademarks of Zotefoams plc.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTFZGZKVKFGMZM
(END) Dow Jones Newswires
May 26, 2021 02:00 ET (06:00 GMT)
Zotefoams (LSE:ZTF)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Zotefoams (LSE:ZTF)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
