Group cites underlying market conditions for more discretionary spend areas as reason for reduced sales.
IG Design Group has reported its financial results for HY2025, the six month period ending 30 September, 2024. Sales for the party category fell to $45.4m, or 11% of the group’s sales, from $57.7m, or 13% of total sales in HY2024.
The group said: “The decline in the party and stationery categories reflect the underlying market conditions for more discretionary spend areas, with the former particularly impact by the softened trading in the UK and Australia.”
Overall, the group reported a decline in revenue of 11% to $393.1m, which it said was driven by ongoing economic challenges, subdued consumer sentiment and careful management of credit risk exposure.
Adjusted operating profit decreased 62% year-on-year to $14.7m, due to the reduction in revenue and rising manufacturing and freight costs.
Stewart Gililand, chair, commented: “Our focus on our path to growth remains steadfast, being a strategy of winning with the winning retailers and reducing the complexity across our business. We have made good progress throughout our turnaround, particularly as we remain on track to return margins to pre-pandemic levels, and although the broader conditions have perhaps become more difficult, our ambition has not abated.
“The challenging macroeconomic backdrop has undoubtably impacted the confidence of retailers, but we are focused on navigating this landscape by prioritising the essentials of improved delivery, increased collaboration and price competitiveness, to a strong customer base with who we have longstanding relationships.
“Whilst the economic landscape remains uncertain, we continue to strengthen our business model to better withstand market challenges and this, coupled with our strong customer relationships and the commitment of our team, continue to fill me with confidence that we will deliver profit growth.”
