Zotefoams PLC on Monday said it expects to deliver significant revenue growth in 2024 following strong third-quarter sales.
The London-based cellular materials company realised improved third-quarter sales of 54% to £39.7 million from £25.7 million the previous year, but with the firm acknowledging a relatively weaker comparable trading period.
Its Footwear segment, which accounted for 48% of sales during the period, outperformed expectations following an ongoing supply chain re-configuration from its largest customer, leading to a continuation of increased short-term demand for its foams.
Zotefoams did not state the name of its largest customer.
Year-to-date sales increased 23% to £110.7 million from £90.3 million the prior year.
Footwear volumes improved significantly, up 60% on-year following increased orders from tier one suppliers, the addition of basketball sales as well as it being an Olympic year.
However, Zotefoam added that it expects the ‘exceptional level’ of footwear demand to return to normalised patterns in 2025.
Zotefoam said its margins have remained strong throughout the year-to-date, but with its focus on the normalisation of operating costs and effective pricing and mix improvement offset by further investment and inflation-linked pay rises.
Zoatefoam said it expects to deliver significant revenue growth in 2024 versus 2023, adding that revenue and adjusted profit before tax are anticipated to be in line with market expectations.
Zotefoams Chief Executive Ronan Cox said: ‘As world leaders in supercritical foams, our positive third-quarter performance further validates the strength of our core technology and market position.
‘The 23% year-to-date sales growth demonstrates our ability to leverage this foundation across multiple markets, particularly evident in our exceptional Footwear performance and continued progress in technical foams.
‘Looking ahead, our order book provides good visibility for the remainder of 2024. While we expect Footwear demand to normalise during 2025, we are actively engaging with our key footwear customer to capture emerging opportunities from their evolving supply chain strategies.
‘Despite ongoing inflationary pressures, our operational discipline and market leadership continue to deliver value. As a result, the board remains confident in its ability to meet market expectations for the full-year.’
Shares in Zotefoams are up 3.9% at 370.00 pence on Monday morning in London.
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