Accsys Technologies, a leading sustainable-wood building-products company, has announced that it anticipates its performance for fiscal 2024 to fall short of market expectations. This decline is attributed to the ongoing softening of market conditions across the U.K., Europe, and North America.
The company disclosed on Friday that both sales volumes and revenue for fiscal 2024 are expected to be below current market expectations. Moreover, it is projected that earnings before interest, taxes, depreciation, and amortization (EBITDA) will be significantly lower than anticipated.
Accsys Technologies attributes this underperformance to several factors. Firstly, trading conditions have been negatively impacted by rising interest rates, a higher inflation environment, and a slowdown in residential activity. Additionally, distributors of building products in the U.S. and Europe have experienced substantial volume declines year to date, leading to an excessive destocking of inventory. Consequently, there has been a decrease in demand for Accsys’ products.
The company expects these challenging market conditions to persist at least until the second half of the 2024 calendar year.
