Profit warning issued at Eurocell as inflation bites

Rising inflation and a downturn in both in its new build and repair, maintenance and improvement (RMI) markets, has seen Derbyshire-based Eurocell issue a profit warning this morning (May 12).

The PVC window, door and roofline manufacturer says group sales for the four months to April 30 were 2% down compared to “a very strong” equivalent period in 2022.

Eurocell says it is being hampered by electricity costs, while feedstock prices for its recycling plants remain “significantly higher” than in last year.

The company said the RMI market will dip by 17% this year, before recovering in 2024, and that it expects sales and profits to be “heavily weighted” towards the second half of this year.

These factors have combined to lead Eurocell to say it expects profit before tax for this year to come in below market expectations.

A statement from Eurocell said: “Our balance sheet is strong and the actions we have taken and plan to implement will improve our efficiency and resilience, and position us well to benefit when our end markets recover.”

Meanwhile, the company has confirmed that Darren Waters has taken over as CEO following the retirement of Mark Kelly.