STÜHLINGEN (dpa-AFX) - Insulation and paint manufacturer Sto expects further sales growth for the current year despite a weaker start. However, the company was initially cautious about earnings development when it presented its annual figures on Thursday, and expects operating profit in the middle of the range at around the previous year's level. In 2022, high procurement prices had dampened profit development. The share price rose by almost two percent in the late morning.

Thanks to higher selling prices, 2022 revenues increased by 12.4 percent to just under 1.8 billion euros, according to the Stühlingen-based company. A good first half of the year was followed by an increasingly difficult second half. Shortages of materials and skilled labor, high costs and rising interest rates had a negative impact on the construction industry, according to the company, meaning that an increasing number of projects had to be postponed.

Gross profit margin came under pressure due to high procurement prices, falling from 52.6 percent to 50.7 percent in 2022. Earnings before interest and taxes (Ebit) increased by 4.2 percent to 129.7 million euros, less than sales. After tax, profit was 89.1 million euros, almost six percent down on the previous year. The figures were in line with the company's expectations.

Shareholders are to receive an unchanged basic dividend of 0.31 euros per preferred share and a bonus of 4.69 euros each, also stable compared to the previous year.

For the current year, management is forecasting sales of 1.91 billion euros and an operating profit of between 118 million and 143 million euros. In the first quarter, sales fell short of expectations due to poor weather conditions with corresponding precipitation and low temperatures and, according to Sto, were slightly below the same period of the previous year./nas/men/mis