Zotefoams Reports Sales Decline

Zotefoams, a London-listed materials company, announced a drop in sales for the third quarter due to subdued demand. The company expects its adjusted pretax profit to be in line with market expectations, while revenue is anticipated to remain at a similar level as seen in 2022.

Meeting the Challenge

Despite the challenging economic conditions, Zotefoams remains proactive in managing pricing, costs, and capacity. The company has taken necessary actions to ensure efficient operations.

Factors Impacting Sales

Zotefoams cited lower economic activity in China and an inventory adjustment within Nike's supply chain as factors affecting sales. These external circumstances have had an adverse effect on the company's performance.

Resilient Performance

Despite the obstacles, Zotefoams has displayed resilience and maintained sales at a similar level year-to-date compared to the previous year. The company has also benefited from a modest currency tailwind.

Strong Outlook

Chief Executive David Stirling expressed confidence in the company's strategy, stating that Zotefoams is on track to achieve enhanced profitability and growth in its foams business units. Despite recent economic activity and destocking in numerous markets, the company anticipates a strong final quarter and underlying profitability growth in this sector.