4imprint Group Plc (AQSE:FOUR) expects operating profit for the full year 2022 to be above even the highest analyst forecast as revenues are on track to break above its long-awaited US$1bn milestone.
In an upbeat statement, the direct marketer of promotional merchandise said excellent demand led to strong financial performance in the first four months of the year.
Profits are benefiting from improved revenue, reconfigured marketing portfolio, operational gearing and relatively stable gross margins.
Overall order counts in the North American business in the first four months of 2022 were 11% above the same period in pre-pandemic 2019, and average order values were 14% above the same period in 2019, which resulted in 27% higher demand revenue than the same period in 2019.
New customer acquisition has remained encouraging, 4imprint said, and retention statistics reflect a growing customer file.
The company stressed that only four months of the financial year have elapsed and "current geo-political and broad economic factors may well affect the group's performance during the balance of the year", with management "cognisant of potential issues relating to possible further COVID variants, supply chain disruption, inventory availability, increasing cost of product, availability and cost of labour, the effect of inflation on our customers' budgets and the general threat of economic recession".