Genuit sees lower margins in H2 as inflation bites; Holds guidance

Plastic pipe maker Genuit said operating margins in the second half would be lower due to the impact of inflationary pressures as it maintained full-year guidance.

The company said it had "acted decisively" to counter ongoing cost inflation in the second half, and although pricing actions have been taken, "the normal lag effect means that the operating margin for the second half of the year will be lower than H1 2021".

"Margins are expected to recover in early 2022 as those lag effects work through. Our businesses continue to experience supply chain issues and we are working hard to mitigate the impacts on performance, particularly in our Climate and Ventilation division," Genuity added.

The company still expects annual profit to be within the range of analyst expectations of £92.5m - £95.9m. Revenue for the four months to October 31 rose 31.1% year on year to £207.6m.