Non-stationary stationery
International Greetings' (L:INGR) Q3 trading update shows that the key 18 January 2016 Christmas sales period has gone to plan and that the group is on track to meet market forecasts for the year to end March. The regaining of positive momentum in the US is particularly encouraging, with the new management expanding horizons with exports into Canada, Mexico and Brazil. The share price has performed well over recent months and the valuation is now a fairer reflection of progress to date and the prospects for continuing growth.
Q3 looking positive across the board
No figures were given in the trading update (which comes hard on the heels of December’s interims), but it confirms that all regions are trading profitably. The benefits of the investment programme in giftwrap manufacture in Holland and Wales and in upgrading capacity in China are all paying back at least as well as planned. The current investment in conversion in the US, albeit at a lesser financial scale, underpins momentum for increasing sales in domestic and export markets. The Australia joint venture has been rebuilding its business and has seen particular success in expanding its product range into party ware, a move that will have been closely watched by other group territories. A strong range of licensed properties (including Star Wars, Minions and Frozen) has contributed good sales, with some licences extended into new territories and across new channels.
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