Joules Group Expects 1H Pretax Profit Below Market Expectations

By Michael Susin

Joules Group PLC shares were down 25% in early trade Tuesday after the company said it expects pretax profit for the first half of its fiscal 2022 to be below market expectations due to global supply-chain issues and inflationary pressures.
Shares at 0811 GMT were down 48 pence at 147 pence.

The British lifestyle brand said it is anticipating a pretax profit and adjusting items for the six months ended Nov. 28 to be between 2.0 million and 2.5 million pounds ($2.6 million and $3.3 million), compared with GBP3.7 million the previous year.
The company said global supply-chain issues are expected to persist during at least the second half of the financial 2022.
Revenue for the period increased 35% to GDP128 million compared with the prior year boosted by a continued strong demand, it said. Excluding garden performance, revenue rose 24%.
Joules said it is confident of delivering continued strong revenue growth in the second half and an improved profit performance.
“While we have not been immune to certain industry-wide pressures including supply-chain disruption and cost inflation, we remain focused on delivering the group’s long-term growth strategy. We have continued to invest in the business to support our plans and… we remain very confident in achieving the group’s exciting future potential,” Chief Executive Officer Nick Jones said.
Write to Michael Susin at michael.susin@wsj.com