Packaging firm slips into the red as raw material prices rise

Chesterfield packaging firm Robinson has slipped into the red for the six months to June 30.

The firm posted a deficit of £600,000 for the period, against a profit of £1.1m last year, on the back of soaring resin prices in what it is calling a “very tight market”.

Alan Raleigh, chairman, said:

“Resin prices have now stabilised and shown the first signs of a reduction in July, however, we are not expecting a significant reduction before the end of the year. We are also experiencing price inflation in other areas including secondary packaging and transport which will continue to impact on the second half of the year.

“Across our markets we are seeing a lower-than-normal level of demand in the third quarter due to the ongoing uncertainty across FMCG supply networks and a varying pace of recovery following the pandemic. We are now expecting this to continue for the second half, so we are accelerating our plans to improve our operations for additional cost savings and profitability.”

Robinson also said it is making progress with the sale of surplus premises.