StockMarketWire.com - Craft and gifting products group IG Design warned on profit as supply-chain disruptions and rising costs hurt margins, and looked set to continue into fiscal 2023.

Operating margins in the first half had been negatively impacted and it was expected that the challenges would continue into the second half of the current financial year and also into FY23.

The group now expects FY22 full year operating margins to be 175-to-225 basis points lower year on year resulting in full year earnings being 'significantly' below current market expectations, with the cost and supply chain headwinds continuing for an as yet unknown period in FY23.

The gloomy update was provided alongside first-half results, with revenue falling short of expectations.

For the six months ended 30 September 2021, like-for-like revenue was up 11% on the prior year, and up 5% on proforma revenues for the six months to 30 September 2019.

'[T]he group had expected revenue growth at the half year in excess of the levels achieved, however this was constrained by the supply chain challenges currently being experienced across all distribution and retail sectors, the company said.


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