Strix Group Plc (LON:KETL), a global leader in sustainable water technologies, control systems, and complementary small domestic appliances, has provided an update on trading for the financial year ending 31 December 2024 (FY24).
Performance in Kettle Controls Division
The Kettle Controls division has faced weaker trading conditions during Q3 2024, which have continued into Q4 2024, particularly in regulated markets. Insights from the recent Canton Fair indicate that the sales improvement seen in the first half of the year was primarily driven by pipeline replenishment rather than a sustained increase in consumer demand.
Despite maintaining its dominant market share, Strix has faced macroeconomic and geopolitical challenges, particularly in key markets like the UK, Germany, and the US, where margins are higher. These challenges have been compounded by cost inflation and increased consumer caution following the UK Autumn Budget.
However, the division’s new low-cost control has been positively received in less regulated markets, with sales beginning in China during the second half of the year. Strix’s planned capital investments in FY24 have supported the development of next-generation controls, which are now progressing well. Original Equipment Manufacturers (OEMs) are currently qualifying these products for use in new appliances scheduled for launch in 2025. This ensures Strix continues to lead the market while maintaining barriers to entry.
