Sales drop at building products group as demand weakens

Sheffield-headquartered insulation and building supplies firm, SIG, has reported a 6% decline in group like-for-like sales to £873m amidst continuing difficult market conditions.

In a trading update for 1 January to 30 April 2024, the group warns weak demand has been a factor in all of its markets.

SIG says it is executing strategic initiatives to drive cost savings and productivity, adding that these steps are helping to mitigate the headwinds.

Gavin Slark, CEO, said: “The actions we are taking now to improve the productivity and cost structure of our operations, during this period of weak demand, will enhance our ability to deliver value as markets recover.

“In addition, we are taking the opportunity to implement actions to drive a more profitable sales mix, with greater focus on specialisation.

“Whilst conditions are likely to remain a headwind in the short term, our operational agility and discipline is enabling the business to respond effectively, and we are committed to implementing the strategic steps that will drive long-term value creation.”

SIG says ongoing commercial and modernisation initiatives are enabling most of its businesses to outperform local markets, with particularly strong relative performance in UK Exteriors, Germany and Poland.

The group notes its overall outlook for FY24 underlying profitability remains unchanged, and it expects profit in H2 to be greater than in H1.

SIG says it remains confident it will be well placed to exploit significant business opportunities once market conditions improve.