Kwik-Fit owner ETEL set for FY22 break-even after FY21 loss

Itochu’s European Tyre Enterprises Ltd (ETEL) business, which owns Kwik-Fit, Stapleton’s and now Murfitts Industries, posted a loss of 3.6 billion yen (£22.97 million; 27.54 million euros; US$31.55 million) for the financial year ended 31 March 2021. According to Itochu’s annual report, which was published on 17 December 2021, ETEL will return to break-even in full-year 2022 results.

That assessment has been a consistent predication on the part of ETEL’s parent conglomerate. In November 2021, Nikki reported that Itochu expected sales of “tyres, paper and pulp in Europe, and of construction materials in North America” to be amongst its particular growth areas.

Commenting on the financial results, a spokesperson for ETEL told Tyres & Accessories: “The financial year ending March 2021 was clearly a very challenging one for the entire economy and our sector in particular as traffic volumes significantly decreased. Despite reduced demand we kept our network open throughout the pandemic to ensure we could support the nation’s motorists where needed. We invested heavily in protecting the safety of our staff in the workplace, as well as in their financial wellbeing by ensuring that we didn’t have to make any cuts in the workforce. While the economic outlook and exact traffic patterns remain uncertain due to the ongoing pandemic, we are confident that we’re in a good position to support the nation’s recovery.”