Devro plc
Trading Update
Devro plc (“Devro” or the “Company”), one of the world's leading manufacturers of collagen products for the food industry, issues the following trading update for the period 30 June to 31 October 2021.
Current trading
- Trading in the period has been encouraging, with constant currency revenue growth above that seen in H1 2021, reflecting the successful execution of our growth strategy delivering volume growth, higher prices and improved mix. Mature markets were strong with continued growth in North America and improved sequential trends in Continental Europe and UK & Ireland. Emerging market growth was particularly strong in Latin America and Middle East and Africa. While the Group is experiencing inflationary pressure this is being mitigated through pricing action and tight cost management.
Financial position and Foreign exchange
- Cash generation continues to be strong; as expected the Group is on track for covenant net debt to EBITDA of c.1.5x at year-end. As previously highlighted the Company is seeing the impact of strengthening foreign exchange headwinds with the adverse year on year impact expected to be c.£3 million on full year operating profit.
Outlook
- The Board's expectations for the full year 2021 remain unchanged. As we look forward to 2022 we are positive about the outlook but remain alert to global supply chain challenges, inflation and further foreign exchange headwinds.
ENDS