A toilet roll and kitchen towel supplier to the likes of Tesco, Aldi, Morrisons and Wilko's has reported losses of £3.5m for the first half of its financial year despite its revenue rising by almost 20%.
Lancashire-headquartered Accrol has posted the increased losses for the six months to October 31, 2021, after also making losses of £500,000 during the same period in 2020.
The listed group also confirmed its revenue increased from £62.3m to £73.7m.
READ MORE: Toilet roll supplier Accrol raises prices after energy costs hike
On an adjusted basis, Accrol reported pre-tax profits of £700,000, down from £2.6m.
Chief executive Gareth Jenkins said: "This has been one of the most challenging periods in the industry that I have experienced in my 25-year career.
"Tissue pricing has reached unprecedented levels, driven by escalating energy costs (rising as much as 500% for certain suppliers) and global sea freight charges, combined with increased UK transport costs, resulting from HGV driver shortages.
"Despite the challenges, the group is on track to recover the cost increases that it has absorbed, as a result of these challenging market dynamics, from its supportive retailer customer base.
"Whilst the profitability of the group will be impacted in the short-term, due to the time-lag on price increase implementation (averaging 2-3 months), we expect to exit the year in a strong position both operationally and commercially.
"Improving market conditions during the period did, however, result in month-on-month growth throughout H1 22, as shopping behaviours started to normalise.
"Q2 revenues were 17% higher than Q1 and market share was 15.3%, as we entered H2 22.
"We have also seen pleasing progress at John Dale, our biodegradable wet wipe business.
"The flushable range of products has been well received by retailers and wet wipe sales were up 33% in the first six months of ownership.
"In addition, our new direct to consumer markets, supplied by our Oceans brand (revenues up c.140% in last six months, compared to prior six months) and our recently launched Amazon offering."
