Synthomer sees FY profits in line as latex glove sales peak

Chemical company Synthomer said it expected full year core earnings to double, in line with expectations, but cautioned that sales of latex gloves during the Covid pandemic had peaked.

The company now sees core profits of £518.4m, compared with £259.4m a year earlier and £177.9m in pre-pandemic 2019.

Margins at its NBR business, which makes the gloves, had normalised to pre-Covid levels in January ahead of guidance. “Accordingly, the group does not expect any NBR pandemic premium in 2022,” Sythomer said.

“In addition, year-to-date NBR demand has continued to be subdued due to high inventory levels of medical gloves and reduced demand due to the easing of the Covid19 pandemic. Trading conditions in NBR are expected to normalise by the end of H1 with market growth returning to 2019 levels in the second half.”