Published on: January 26, 2022

Robust demand…

IG Design Group’s trading update for the nine months to 31 December 2021 reports a continuation of contrasting recent trends, with robust demand offset by supply chain delays and operating cost pressures in an inflationary environment. The latter pressures have indeed intensified over the Q3 trading period, such that the group has seen a 460bps year-on-year (yoy) decrease in its cumulative nine-month operating profit margin to 4%. With lower craft sales and continuing cost headwinds expected in Q4, the group is guiding to an FY22E breakeven result at the adjusted operating profit level, with no final dividend to be paid. With the external challenges and uncertainties expected to continue into FY23E, the group believes it is too early to provide firm guidance with regard to FY23E at this stage.