10th May 2006 12:05
Devro PLC10 May 2006 10 May 2006 AGM STATEMENT Trading for the year-to date has seen greater regional variation than has beenthe case for some time. Positive sales performances have been recorded inAustralia, Latin America and Europe with Eastern Europe in particular continuingto achieve significant growth. These increases, however, have been largelyoffset by weaker sales in the US and in some South East Asian markets. Pricingin the majority of our markets around the world has been stable although therecontinues to be some pressure in the UK, while the strength of the Czechcurrency is having a significant adverse effect on the value of Cutisin's exportbusiness. Elsewhere currency effects are generally positive. Increased energy prices are clearly a major source of pressure on manufacturingcost and this is expected to continue to be the case during the second half ofthis year. We remain committed to improving the business through improving our products,technologies and market positioning. As previously reported, we are acceleratingour investment in Cutisin and we are also well advanced in actions fordeveloping and improving our other operations. As a result, while the businessis facing some cost and market challenges in the immediate future, the outlookfor the latter stages of 2006 into 2007 continues to be encouraging. TheDirectors therefore remain confident and optimistic about the future prospectsfor the company. Enquiries: Graeme Alexander Chief Executive 01236 879191 John Neilson Finance Director Jon Coles/Mark Antelme Brunswick 020 7404 5959 Notes to editors: Devro (www.devro.plc.uk) is the world's leading manufacturer of collagenproducts for the food industry. In addition, the company manufactures a range ofplastic casings, supplies customers in the food industry with a range ofdistributed products and also supplies pure collagen raw materials for use inthe healthcare industry. With manufacturing facilities in three continents and2005 revenue in excess of £150m, Devro products are sold worldwide. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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