DEVRO, the Scottish-based sausage-skin and food casings manufacturer, flagged a “robust first half performance” as group revenue for the period to June 30 jumped 8.3 per cent to £129.8 million from £119.9m, driven by growth in mature markets such as the UK and Ireland, continental Europe and North America.
Operating profit dipped 8.4% to £18.6m from £20.3m as margins fell, but the Moodiesburn-based company said it expects to offset inflationary pressure over the full year mainly by higher selling prices plus higher costs to drive growth including new product development.
Underlying pre-tax profit for the period fell to £15.9m from £17.7m with basic earnings per share down to 7.5p from 8.7p. However, revenue increased to £129.8m on the same basis, up from £119.9m 12 months previously, with the increase mainly attributed to growth in mature markets
Chief executive Rutger Helbing said that the group’s first half performance built on its track record of recent years, “reflecting our strong and improving growth platform”.
He noted: “The results are particularly pleasing given the challenging macroeconomic backdrop with the group continuing to ably respond.
“While we remain alert to global supply chain challenges and inflation, the board’s expectations for the full year are unchanged. The group’s robust first half performance, solid order books, pricing action and ongoing momentum gives us confidence in the full year outturn.
During the period, Devro implemented new operating capacity in China and the Czech Republic while the volume of edible collagen casings it produced increased by 4.5%.
Its mature markets volume jumped 7.6%, driven by strong growth in continental Europe, North America, and the UK and Ireland, offset by weaker market conditions in Japan and Australia.
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