Shares in Ultimate Products (LSE:ULTP), owner of the Bedlray and Salter household brands, fell 16% after the company reported a decline in first-half revenue due to weak UK consumer demand.
Sales for the six months to 31 January 2025 dropped 5.7% to £79.4 million, with UK sales struggling while international revenue grew 12%. The decline was partly driven by a 46% drop in air fryer sales, a key product category in the previous year.
Trading improved in the second quarter, and the company’s order book for the second half is up 13% year-on-year. However, tough conditions for some retail customers have slowed new orders.
Higher freight costs added £2 million in expenses, impacting profitability. Adjusted EBITDA for the first half is expected to be around £7 million, with full-year earnings projected at £14-16 million.
Despite cost pressures, the company plans to maintain its dividend policy and continue investing in automation to drive efficiency.