Polygiene reported a rise in first-quarter sales, despite ongoing difficulties due to inflation, supply-chain constraints and the war in Ukraine. The Swedish firm reported net sales of 45.1 million Swedish kronor (€4.3m) for the three months to March 31, an increase of 7.5 percent compared to the same period last year. The gross margin rose to 67 percent from 64.8 percent. Operating profit before tax fell to SEK 9.3 million (€0.9m) from SEK 9.8 million, giving an operating margin of 20.7 percent, down from 23.4 percent year on year.
Polygiene said that the usual impact of Lunar New Year celebrations on operations – with monthly closures across China and Southeast Asia – was further hit by an extended halt in production due to renewed Covid outbreaks and subsequent lockdowns in China.
On a geographical basis, Polygiene traced 63 percent of first-quarter sales to the EMEA region, 21 percent to APAC and the remaining 16 percent to the Americas.
Polygiene said initial sales from SteriTouch – which it bought in January – had been slightly lower than forecast due to the transfer of the U.K. company and its customers taking longer than anticipated. However, it maintained annual sales forecasts of £1.6m (€1.9m).
“Overall, the quarter’s financial results and the key figures point, once again, in the right direction,” said chief executive Ulrika Björk. “Unfortunately, prices from various suppliers have increased due to rising electricity and transport prices. However, the group has a strong margin structure and has managed to absorb price increases yet maintain a solid gross margin in recent quarters,” she added. Björk said supply and logistics issues would continue to impact global business in the foreseeable future. She also noted that polymer availability “remains strained,” but the company had secured supplies for the next six months. While the company did not anticipate losing orders due to the polymer shortage it still expects subsequent delays in delivery times “due to issues with material procurement that customers experience for their products.”
Looking ahead, Björk said the situation in Ukraine, lockdowns related to Covid, and inflation were extra factors “that are difficult to assess.” “We will proactively work to minimize the impact of external factors as far as possible,” she said.
