Robinson plc, the Chesterfield-based manufacturer of plastic and paperboard packaging, is anticipating a slight dip in revenue for 2023.
In a new trading statement, released prior to the announcement of its final results for the year ended 31 December 2023, the firm noted that revenue for 2023 is expected to be £49.6m, which is 1.8% below the prior year.
After adjusting for price changes and foreign exchange, sales volumes are 6% lower than in 2022, however, the company said it was “pleased to report” that 2023 operating profit before exceptional items and amortisation of intangible assets is expected to be ahead of 2022, and in line with current market expectations.
Robinson plc said: “We anticipated that sales volumes would come under further pressure because of inflation, the cost-of-living crisis, the de-listing of some products by our customers, and certain of our customers continuing to prioritise existing business over innovation projects, a characteristic which started during the Covid-19 pandemic.
“These factors have manifested in lower sales in 2023, notably in the first half of the financial year.”
With lower demand and continued inflationary pressures, Robinson plc implemented a restructuring program in June, which resulted in exceptional costs of £0.4m and annual savings of £0.7m, of which £0.4m benefited 2023.
The business added: “We believe we have now passed the worst of the downturn with our customers; sales volumes in the second half of 2023 were 1% above the comparative period in 2022, as implemented new projects began to take effect. As a result of successful sales activity, we expect a substantial increase in sales volume in the plastics business in 2024.”
The update comes after the company was impacted by Storm Babet, during which the River Hipper, which flows through Robinson plc’s premises in Chesterfield, had risen to its highest ever recorded level and flooded part of the site.
