ProCook Group PLC (LSE:PROC) has downgraded its full-year profit guidance following weaker-than-expected sales in recent weeks as the cost-of-living squeeze takes its toll on consumer demand.
In a trading statement, the cookware brand said it now expects pre-tax profit for the 2023 financial year to be around breakeven, down from its previous guidance of a £4mln-£6mln profit.
Revenue is expected to come in between £60mln and £65mln, after sales weakened on softening consumer demand in the peak Christmas trading period.
Trading has also been impacted by increased costs due to shipping and foreign exchange headwinds, the company noted.
The company said it has developed a plan to maximise its trading performance and profitability.
It is now seeing lower shipping costs for new product intake, which together with cost reductions agreed with suppliers are expected to support a recovery in gross margins in the next financial year.
The company aims to reduce operating costs by £3mln on an annualised basis through various initiatives, including cutting board costs and logistics costs.
“We are confident this plan will enable us to emerge stronger from this difficult trading environment to become the customers' first choice for kitchenware,” ProCook said in a statement.