1st May 2008 12:00
Devro PLC01 May 2008 1 May 2008 DEVRO PLC INTERIM MANAGEMENT STATEMENT Devro plc, the world's leading manufacturer of collagen products for the foodindustry, will today provide the following Interim Management Statement, for theperiod from 1 January 2008 to date, at its Annual General Meeting. Current trading--------------- This year has continued the encouraging improvements seen in the second half of2007, with both revenue and profit ahead of the corresponding period last year.Overall sales volumes are higher than prior year. Edible collagen sales have shown good growth, with gains in Europe and the Asia/Pacific region more than compensating for the expected reduction in the USfollowing a switch to co-extrusion technology by one major account in the thirdquarter of 2007. Sales in the UK, in particular, were strong, continuing theuplift in this market that was seen in the fourth quarter of 2007. Also,collagen gel sales in the US are ahead, reflecting the change to co-extrusionmentioned above. Overall sales revenues have benefited from translational exchange gains, withsterling being weaker, and this is compensating for the adverse impact onCutisin's export sales resulting from the stronger Czech crown. Average sellingprices are marginally higher than the corresponding period last year. Manufacturing performance has been satisfactory, with the stability reported inthe Scottish plants at the end of 2007 continuing into the current year. Financial position------------------ As was generally expected, there are considerable increases in raw material andenergy prices, which are a challenge to the business. Good operationalmanagement and continuing attention to pricing will, however, enable the group'soverall financial position to remain strong. Cash flows have contributed to abetter than expected net debt position. Market developments------------------- In April, Devro completed the establishment of a Representative Office in Moscowand successfully recruited a local citizen with good qualifications andexperience to work as sales manager in Russia. Board----- As previously announced, Peter Williams joins today as Devro's new FinanceDirector, following John Neilson's retirement at the Annual General Meeting. Outlook------- We continue to see good demand in most of our markets and stability in ourmanufacturing operations. The Board's expectations for profit for the yearremain unchanged, and the Board continues to have confidence in the futureprospects of the business. Enquiries Anita Scott / Mark Antelme Brunswick Group LLP 020 7404 5959 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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