IG Design, the world’s largest manufacturer of greeting cards, wrapping paper, and gift bags, has nearly tripled its annual profit despite a revenue drop due to “soft demand,” by focusing on business simplification.
The London-listed Christmas cracker-maker reported an adjusted pretax profit of $25.9 million (£20.4 million) for the financial year ending on March 31, 2024, up from $9.2 million (£7.3 million) the previous year.
The profit aligns with the company’s guidance upgrade at the end of April, which previously forecasted $20.5 million (£16.2 million). This upgrade boosted IG’s shares by 30 percent, with shares remaining up 57 percent so far this year.
However, IG also reported that revenue dropped to $800.1 million (£630.6 million) from $890.3 million (£701.8 million) over the 12 months, attributing this to underperformance in its Americas division during the first half of the year and ongoing “softness” in the UK and Australia.
The firm noted that continental Europe had been an “exception” to the “soft demand” observed in several of its markets.
Since becoming chief executive last April, Paul Bal has focused on exiting loss-making contracts, reducing costs, and rebuilding IG’s profit margins, which were affected during the Covid-19 pandemic due to increased paper and shipping costs and decreased demand.
IG’s adjusted operating profit margin rose to 3.9 percent for the last financial year, up 210 basis points compared to 2023. The firm remains confident that its margin will return to the pre-Covid level of 4.5 percent by March 31, 2025.
Stewart Gilliland, IG’s chair, commented: “With invigorated senior leadership across the group, secured financing, and a strengthened and stable board, the group is well-positioned to complete its recovery over the coming year and embark on an exciting growth-focused strategy for the years ahead.
“While the global political-economic backdrop could be better, the continued support of our customers and suppliers, who are working closely with our talented teams, positions us well to deliver better shareholder value.”
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By Benjamin
IG Design, the world’s largest manufacturer of greeting cards, wrapping paper, and gift bags, has nearly tripled its annual profit despite a revenue drop due to “soft demand,” by focusing on business simplification.
The London-listed Christmas cracker-maker reported an adjusted pretax profit of $25.9 million (£20.4 million) for the financial year ending on March 31, 2024, up from $9.2 million (£7.3 million) the previous year.
The profit aligns with the company’s guidance upgrade at the end of April, which previously forecasted $20.5 million (£16.2 million). This upgrade boosted IG’s shares by 30 percent, with shares remaining up 57 percent so far this year.
However, IG also reported that revenue dropped to $800.1 million (£630.6 million) from $890.3 million (£701.8 million) over the 12 months, attributing this to underperformance in its Americas division during the first half of the year and ongoing “softness” in the UK and Australia.
The firm noted that continental Europe had been an “exception” to the “soft demand” observed in several of its markets.
Since becoming chief executive last April, Paul Bal has focused on exiting loss-making contracts, reducing costs, and rebuilding IG’s profit margins, which were affected during the Covid-19 pandemic due to increased paper and shipping costs and decreased demand.
IG’s adjusted operating profit margin rose to 3.9 percent for the last financial year, up 210 basis points compared to 2023. The firm remains confident that its margin will return to the pre-Covid level of 4.5 percent by March 31, 2025.
Stewart Gilliland, IG’s chair, commented: “With invigorated senior leadership across the group, secured financing, and a strengthened and stable board, the group is well-positioned to complete its recovery over the coming year and embark on an exciting growth-focused strategy for the years ahead.
“While the global political-economic backdrop could be better, the continued support of our customers and suppliers, who are working closely with our talented teams, positions us well to deliver better shareholder value.”