- Gross margins weaken on higher costs
- Raw materials price rises levelling out
Although disruption to global supply chains is rarely welcome, it can benefit companies that manufacture products locally, but which can compete with imported goods on price. Flooring manufacturer James Halstead (JHD) registered a double-digit increase in profits on the back of rising sales and a 94 basis point increase in the operating margin. Reported profits were ahead of their pre-pandemic levels, as the group built its share of key growth markets in the UK, Europe and Australia. In the UK, which represents 37 per cent of group revenue, sales rose by 24 per cent as competitors, who import and rebrand goods from the Far East, struggled.