REG - Zotefoams PLC - Trading Update

ZotefoamsAnnouncement

25/05/2022 07:00

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RNS Number : 6535M  Zotefoams PLC  25 May 2022

Zotefoams plc

("Zotefoams" or "Group")

 

Trading Update

 

25 May 2022 - Zotefoams, a world leader in cellular materials technology,
today provides a trading update for the four months ended 30 April 2022 ahead
of its Annual General Meeting to be held today at 10am at 675 Mitcham Road,
Croydon, CR9 3AL.

At this meeting Steve Good, Chair of Zotefoams plc, will make the following
statement:

In line with the outlook statement in our 2021 preliminary results
announcement, we have experienced good demand in the first four months of
2022, resulting in Group revenue for the period being approximately 13% ahead
of the comparative period.

Highlights in the period are:

 •    Polyolefin Foams sales increased by 20%. Volumes have increased by 5%, with
      the majority of the sales uplift being driven by increased prices
 •    High-Performance Products (HPP) sales increased by 6%:

      • Footwear sales at similar levels to prior period, as expected at this
      point in the demand cycle

      • Aviation sales improving strongly from a low base

      • T-FIT(®) insulation products sales increased by 18%
 •    MuCell Extrusion's focus is on the technical and commercial development of
      ReZorce(®) mono-material packaging solutions, with good progress in the
      period

The macroeconomic environment remains difficult, with input cost inflation
both significant and unpredictable and supply chains prone to disruption. We
have been reacting to input-price movements by increasing our selling prices
as well as focusing on internal efficiencies and controllable costs, while
proactively implementing actions to mitigate supply chain risks. There has
been no material disruption to the Footwear supply chain or to our major
facilities in the UK, USA and Poland, although there was a 5-week enforced
shutdown of our China T-FIT facility due to COVID-19.

Outlook

We have delivered good sales growth in the first four months of the year and
anticipate this sales momentum to continue, supported by the price increases
and a strong order book with excellent visibility to the end of June. However,
we do not anticipate the challenging macroeconomic environment to ease and
remain mindful of some specific risks around COVID-19.

While it is still early in the year, we anticipate Group revenue to be ahead
of market expectations for the full year, with demand in line and higher
prices recovering cost inflation. Current foreign exchange rates, net of
hedging, may also provide some additional benefit. Consequently, we are
comfortable with expectations for growth in profit and remain confident about
the long-term prospects of the business.

Commenting on the update David Stirling, Group CEO of Zotefoams, said:

"Zotefoams products are well positioned to deliver benefits to society by
saving energy, protecting people and goods and helping our customers make
their products using less raw material. We have invested significantly in
recycling initiatives with ReZorce barrier packaging and in our core foams
business, and we are well placed for future growth. The current macroeconomic
climate is extremely challenging and I am proud of our team for balancing
customer expectations with the cost inflation and supply chain pressures we
face as a business.

 

- 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(®) polyolefin and ZOTEK(®)
high-performance foams, Zotefoams sells to diverse markets worldwide.
Zotefoams uses its own cellular materials to manufacture T-FIT(®) 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(®) 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 (http://www.zotefoams.com)

AZOTE(®), ZOTEK(®), ReZorce(®) and T-FIT(®) are registered trademarks of
Zotefoams plc.

www.zotefoams.com (http://www.zotefoams.com/)

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