MACFARLANE Group has released its interim results for the first half of 2022, which show a 14% rise in revenue to £139.2 million compared with the same period 12 months earlier.
Operating profit at £9.6 million and pre-tax profit at £8.9 million increased by 4% and 3% respectively.
In terms of packaging distribution, Macfarlane revealed sales growth of 11% to £123.5 million, highlighting recovery of input price increases and benefits from the acquisitions of Carters Packaging and PackMann offsetting lower demand from e-commerce customers.
Gross margin at 32.3% was slightly behind last year’s 32.7% figure, while operating profit before amortisation reduced by 2% to £8.9 million. Macfarlane attributed this to cost increases of 14%.
Manufacturing operations delivered ‘strong’ growth, the company added, with sales increasing 40% to £15.7 million and operating profit before amortisation increasing 44% to £2.5 million.
Stuart Paterson, chairman of Macfarlane Group PLC, said, “The Group has achieved a solid performance in the first half of 2022, especially when compared to a strong trading period in H1 2021. This has been achieved against the backdrop of a slowdown in spend from the e-commerce sector and significant inflationary pressure on operating costs.
“We have also made strategic IT investments and incurred start-up costs on our new north-west of England distribution centre. Our people have consistently demonstrated commitment and operating excellence as the business continues to grow and develop.
“We expect to experience a continuing challenging environment with inflationary pressure on our operating costs and slower demand from our e-commerce customers. Overall, the Group is confident that the effectiveness of our strategy, the diversity of the customers and sectors we serve, the quality of our people, and the resilience of our business model will ensure 2022 will be another year of growth for Macfarlane. Our expectations for the full year 2022 are unchanged.”
