SigmaRoc reported improving margins and profit growth that outpaced its revenue, as the lime and minerals group’s operational discipline paid off.
On the face of it, this was a good update from SigmaRoc, so Wednesday’s share-price drop was a surprise.
The company said revenue for the nine months to 30 September rose 2.5% to £795m, while underlying EBITDA grew 7.5% to £207.3m and its margin widened to 26.1%, up more than one percentage point.
It said all its end markets, including industry, environment and construction, grew in the third quarter, with construction returning to growth after a slight first-half dip, helping to offset continued weakness in European residential construction.
The group, which recently completed the €110m acquisition of a Lithuanian dolomite business to expand in the Baltics, said it remained confident of meeting full-year expectations.
However, it noted that conditions in some markets remained subdued amid geopolitical and economic uncertainty. The market’s reaction to this warning has likely been exacerbated by the current environment, pushing SigmaRoc shares down 6%.