Packaging firm set to raise prices as inflation bites
Chesterfield-based packaging firm Robinson says it will raise its prices after a “very challenging” year saw it slip into the red.
The firm made a loss of £100,000 last year, despite turnover rising by 24% to £46m, as the company cited “substantial uncertainty and volatility” throughout last year and blamed inflation for the coming price hike.
Robinson said it underwent a “modest” restructuring programme in November, which it hopes will save it £300,000 this year. The firm has also agreed to sell a premises in Sutton-in-Ashfield.
Alan Raleigh, chairman, said: “The Robinson business has experienced very challenging conditions throughout 2021 across input price inflation, customer demand and the ongoing uncertainty resulting from the Covid-19 pandemic.
“The substantial uncertainty and volatility experienced in 2021 is likely to continue through 2022, with further inflation in input costs anticipated.
“As a result of the inflation already experienced in 2021, we are seeking substantial price increases from all customers, which will support the improvement of margins in 2022. Given the ongoing pressure on input prices the board will continue to prioritise the management of fixed costs in 2022.
“It is likely that the consequences of the Russian invasion of Ukraine will remain for some time. Whilst we cannot foresee or fully quantify the impact, we are closely monitoring the situation, we will drive profitability, conserve cash and respond as necessary across our geographical locations.
“Despite the ongoing uncertainty, profits in the 2022 financial year are expected to be ahead of 2021 and we remain committed in the medium-term to delivering above-market profitable growth and our target of 6-8% adjusted operating margin.”
