Shares in IG Design Group PLC (LSE:IGR) wrapped up a 15% gain after the maker of gift packaging, stationery and craft goods reported significant profit growth and progress with its simplification plans, despite softer order demand amid low Christmas expectations.
Despite lower sales in North America, the company's six-month trading update revealed considerable increases in profit and margin, which it said are in line with the board's expectations for the year.
The DG Americas business saw a sales dip, which was partially offset by sales growth in DG International, particularly in continental Europe.
"The group has seen a return toward normal ordering seasonality following the disruption to international supply chains in recent years, meaning that some sales have returned to being in the second half of the financial year rather than the first," the company said.
However, there has been lower consumer demand for everyday products in some markets and reduced order quantities guided by lower customer expectations of the forthcoming Christmas season.
The board expects to meet its full-year expectations, maintaining its goal of returning to pre-pandemic operating margins by the end of FY2025.