19th Mar 2025 10:46
(Alliance News) - Essentra PLC on Wednesday said it remained focused on delivering operational efficiencies, as it reported a fall in annual profit due to challenging market conditions.
The Oxford, England-based manufacturer and distributor of plastic injection moulded, vinyl dip moulded and metal components said pretax profit dived 32% to GBP5.7 million in 2024 from GBP8.4 million in 2023.
Revenue fell 4.4% to GBP302.4 million from GBP316.3 million.
Essentra Chief Executive Officer Scott Fawcett said the firm navigated "challenging market conditions" in 2024 amid volume reductions.
"Our agile approach to operations across our global footprint has supported the mitigation of volume decline and protected profitability in the short term, whilst providing optionality to respond to macroeconomic changes, ensuring we remain well-positioned to take advantage of market recoveries when they occur," he said.
The company recommended a final dividend of 1.55p per share, down 35% from 2.4p a year ago. This would bring the total payout to 2.8p, down 22% from 3.6p for 2023.
Essentra expects its share buyback programme of up to GBP150 million it had announced in February 2023 to be extended beyond 2025. Up to December 31, 2024 it has bought back around 16.4 million shares at average 176.4p for a total of GBP28.9 million.
Looking ahead, the company anticipates that results for 2025 will be in line with its own expectations.
"The group is taking a cautious view on the timing of any material improvement in end-market conditions in 2025 and anticipates that market recovery will vary by region. Whilst regional gross margins are expected to remain robust, the group anticipates that the Americas and Asia Pacific proportion of group revenue will increase due to their near-term growth outlooks, therefore having a dilutive impact on overall group operating margin performance," Essentra said.
Essentra shares fell 4.7% to 110.20 pence each on Wednesday morning in London.
By Tom Budszus, Alliance News slot editor
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