Mpac H2 revenues seen 'materially lower ' than expectations

(Sharecast News) - Packaging business Mpac Group warned on Tuesday that tariff uncertainty had caused the deferral of order decisions in Q2, which it said will impact H2 revenues.

Mpac said H1 revenues were in line with internal expectations, despite growing macroeconomic headwinds resulting from US tariffs. It said a "strong" January order book, "good" performance from the businesses acquired in the prior year, and "healthy" short-cycle service business all contributed to its H1 results.

However, Mpac stated that original equipment order intake in its core Mpac business "slowed materially" through Q2, as customers responded to growing uncertainty around tariffs and low consumer confidence by deferring investments and cutting back on spending.

Mpac said its closing order book was expected to be roughly �90.0m, down from �118.5m at the same time a year earlier, providing "materially lower than anticipated cover" for H2 revenues, with the Americas region particularly impacted. It added that its services business remained "broadly unaffected".

"Q2 order intake is an important period for the group as orders secured in the period drive H2 revenue flow to where there is typically a natural full year weighting. Accordingly, due to the expected impact from slower orders in Q2 the board now expects FY 2025 revenue to fall significantly below the board's previous expectations," said Mpac.

As of 0830 BST, Mpac shares had sunk 26.6% to 315.60p.

Reporting by Iain Gilbert at Sharecast.com