Synthomer (LSE:SYNT) shares slumped 11% on Tuesday as the chemicals supplier reported an operating loss for 2022, caused by reduced demand.
Revenue rose 11.2% to £2.38bn, which was less than the £2.56bn expected by City analysts, while the FTSE 250 group swung to an operating loss of £20.5mln from a profit of £296.5mln last time.
Net debt ballooned to over £1bn from £114.2mln a year earlier.
“Extreme” build-ups of medical glove inventories were blamed, as the pandemic led to “significantly reduced demand for nitrile butadiene rubber”.
The new financial year has seen "subdued levels of demand" across most end markets and geographies, with progress expected in the second half of 2023 although visibility remains limited and destocking of medical gloves is expected to continue for most of the year.
Synthomer (LSE:SYNT) said it had positioned itself for "profitable growth as demand recovers".
Shares fell 11.2% to 109p.