(Reuters) - UK building materials supplier SIG (LON:SHI) Plc maintained its forecast for full-year operating profit on Tuesday, but warned that market conditions were expected to stay challenging in the second half of the year.
SIG has had to navigate tough market conditions since the onset of the pandemic and the Russia-Ukraine conflict adversely impacted energy and raw material costs.
Like most companies across sectors, SIG has resorted to passing on some costs to its customers as the company grapples with rocketing prices of essential raw materials.
SIG, which sells roofing and insulation materials in Britain and some other European countries, posted a 5% rise in revenue for the first half of the year helped by price hikes.
"Looking ahead, while we expect market conditions in the second half to remain difficult, we remain confident the business will... continue to improve its underlying operational performance," CEO Gavin Slark said in a statement.
SIG, which has taken a hit to its margins from higher-than-normal operating costs, said it remained confident in improving its operating margin to 5% in the medium term, up from the 2.3% it logged in the first half of the year.
Last month, SIG said it expected annual underlying operating profit at the lower end of current market expectations, hurt by weak demand in its European markets and a spike in operating costs. SIG maintained its annual operating profit forecast on Tuesday.
Underlying operating profit for the first half fell 23% to 33 million pounds ($42.11 million).
($1 = 0.7837 pounds)