IG Design reports revenue slump following a ‘return to more traditional’ ordering patterns
IG Design, which calls itself one of the “world’s leading designers, innovators and manufacturers” of gift packaging and stationery items, today announced a decline in revenue for the six months ended 30 September.
In the first half of the company’s financial year, revenue fell 15 per cent, driven by “lower demand across both seasonal and everyday categories” as well as a return to “traditional” ordering patterns following the pandemic.
However, despite the revenue slump, adjusted operating profit improved by 26 per cent year-on-year and the group’s operating margin increased 270 basis points to 8.6 per cent, driven by lower costs and “continued benefits from strategic initiatives”.
While both profit growth and profit margins came in “ahead” of management expectations, IG Design refrained from declaring a dividend.
Chair Stwart Gilliland said: “We are pleased with the progress we have continued to make on our journey of improving operational efficiency and simplifying our business.
“Whilst the challenging external environment, particularly in the US, has impacted our revenue performance, we have seen increased collaboration in navigating the uncertainty together with our customers.”
He added: “We are becoming increasingly confident that a more resilient business model is taking shape and that we will realise our stated aspiration to return the Group to pre-Covid-19 operating profit margins by 31 March 2025.”