The rise in energy costs have forced a toilet roll and kitchen towel supplier to the likes of Tesco, Aldi, Morrisons and Wilko's to raise its prices.
Lancashire-headquartered Accrol has revealed that since October 2021, it has "experienced further inflationary pressure on input costs including pulp prices, supply chain costs and most significantly energy costs".
The AIM-listed manufacturer added that "unavoidable surcharges" to parent reel prices, relating to exceptional energy price increases, have "very recently been levied" on the company, which will "significantly impact" margins.
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Accrol also said it is launching a full strategic review which will be "designed to capitalise on the evident strength of the business' market position, its balance sheet, and its solvency, underpinned by significant banking support, to ensure that the shareholder value is optimised".
The firm added it now expects its full-year revenue to grow by 17% to c.£160m, up from £136.6m, generating adjusted EBITDA of c.9m, down from £15.6m, with "margin recovery anticipated in FY23".
The company's financial year is due to end on April 30, 2022.
A statement issued to the London Stock Exchange said: "In the period since the company's last trading update of 20 October 2021, the group has experienced further inflationary pressure on input costs including pulp prices, supply chain costs and most significantly energy costs.
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"In light of these cost increases, the group has implemented further cost efficiencies and has engaged with all its customers successfully securing substantial price increases, over and above those secured in mid-2021 and, as a result, the board was confident of meeting its revised expectations for FY22.
"However, unavoidable surcharges to parent reel prices, relating to exceptional energy price increases, have very recently been levied on the company, which will significantly impact margins.
"The management team has experience of successfully managing inflationary pressures and the board is confident that this is a timing issue and that further cost increases, including these recent surcharges, will continue to be passed on successfully to Accrol's customers.
"The underlying business is in good shape and the board remains confident in the medium-term prospects for the group.
"Despite continued supply chain disruption, particularly at ports, around the world and specifically in the 海角视频, the business continues to manage customer supply well, having secured and maintained additional stocks in paper and finished goods."