HomeStock MarketAccrol Group's stock price plummeted due to a profit warning!

Accrol Group’s stock price plummeted due to a profit warning!


this Accrol Group Holdings (London Stock Exchange: ACROL) After issuing a new profit warning, the stock price plummeted on Wednesday. 38.9p per share Toilet paper manufacturer It fell by 14% on the most recent day. Now it is down 18% from the previous year.

The Accrol Group has recently been hit by rising input costs. Today it states “The group’s raw material supply chain is under tremendous pressure and has been tightened further in recent weeks. ” this Low-priced stocksSaid that rising energy costs, material shortages and general inflationary pressures have affected the production costs of pulp and mother reels.

In addition, it said that the shortage of heavy-duty truck drivers has pushed up costs while also limiting revenue growth.

Accrol warns of profit

Accrol said, although “These cost increases are being successfully passed on…there will be a time lag when all the effects are passed on. “As a result, the company expects its full-year earnings through April 2022 to be lower than expected.

It said it now expects revenue to grow 25% year-on-year. The adjusted EBITDA is expected to grow by about 20%. Passing these higher costs onto operational efficiency will result in an EBITDA margin similar to last year’s 11.4%.

In other news, Accrol pointed out that the British health sector’s demand for discounted goods “Continue to see slow but steady improvement“. It added that its liquidity and cash flow conditions remain “strong.“The adjusted net debt is expected to be in line with market expectations.

Post Accrol Group’s stock price plummeted due to a profit warning! First appeared in Variegated Fools UK.

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