SIG reports Q1 LFL sales growth

(Sharecast News) - Insulation and building products supplier SIG said on Wednesday that like-for-like sales had grown in the three months ended 31 March as it continued to execute on its strategic initiatives to drive cost savings and productivity, and to improve cash generation. SIG said group like-for-like revenues were up 2% at £636.0m, while reported revenues were 1% lower as a result of a 2% impact in aggregate from working days and exchange rates, as well as a 1% impact from branch closures over the last year.

All geographies reported positive like-for-like growth, excluding France, with its UK Interiors business moving from a 6% decline in H224 to 4% growth in Q125, while Germany continued to "materially outperform" its market.

The London-listed firm added that like-for-like volumes were up 3% in the quarter and said "modest inflation" on input costs was more than offset by continued pricing pressure in the market, contributing to a net 1% reduction in pricing.

Looking ahead, SIG noted that market conditions so far in 2025 were as expected, and its outlook for the full year remained unchanged as it continues to believe that, to the extent there was the start of a recovery within 2025, it was more likely to drive demand in H2.

SIG also stated that it was mindful of very recent developments in the global economy, notably with respect to tariffs. However, it also said the vast majority of its purchases were within Europe, and most were made within the country in which the products are sold. As such, it expects little direct impact from any potential changes in cross-border tariffs.

Chief executive Gavin Slark said: "The group has made an encouraging start to the year. Whilst we continue to experience weak demand in our end-markets across the UK and EU, we are navigating through this successfully. We are creating better-performing businesses across the group, which will help to significantly improve our future profitability and cash generation when markets recover."

As of 1145 BST, SIG shares were up 0.92% at 14.53p.

Reporting by Iain Gilbert at Sharecast.com