Synthomer expects gloves market slump to continue in 2023

London – Synthomer plc expects demand for nitrile rubber (NBR) gloves to remain low until the end of 2023, as customers continue destocking, the UK group has announced.

However, in a full-year trading update, issued 31 Jan, Synthomer said that underlying demand in end-user markets for medical gloves remained robust.

The London-headquartered group does not expect the current period of destocking, and hence low NBR production levels, to abate before the end of 2023.

Furthermore, demand for Synthomer's products supplied to the construction and coatings market segments had also declined during 2022

The downward trend, it said, was particularly due to a “deterioration in macroeconomic conditions through the second half of the year.”

The decline was “most pronounced” in the group's European businesses, but operations outside Europe including its adhesives division were also affected in the final quarter of 2022.

For full-year 2022, Synthomer expects to report earnings (EBITDA) in the range of €297 million - €304 million, down from £522 million reported for 2021.

Annual revenue is set to come in at £2.6 billion, up from £2.3 billion reported in 2021.

Synthomer will publish its full report on 28 March.