9th Nov 2009 07:00
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For Immediate Release |
9 November 2009 |
Devro plc
Interim Management Statement
Devro plc, the world's leading manufacturer of collagen products for the food industry, today provides an Interim Management Statement in respect of the period from 1 July 2009 to date.
The Group has continued to demonstrate an improved performance, with most areas on or ahead of target, and the Board is confident that the performance for the year to 31 December 2009 will be ahead of market consensus.
Recent trading has continued the encouraging improvements seen in the first half of the year. Demand for edible collagen remains strong. Sales volumes are showing good growth, particularly in Latin America and the Asia/Pacific region.
Average selling prices are higher than the corresponding period last year, and continuing to show a positive trend. Total sales revenues have also benefited recently from translational exchange gains, with sterling being weaker against almost all other currencies. Exchange rate movements had more of a beneficial impact on EBIT than in the first 6 months of the year.
Difficulties with hide supplies that were acute earlier in the year have been resolved, but as previously indicated, are still negatively impacting costs compared to 2008.
Manufacturing performance is showing considerable improvement compared with previous years, contributing to overall better factory cost recoveries. The recent restructuring of our Czech manufacturing operations is also having a positive impact on results in the second half of this year.
We continue to see good demand for collagen products in most of our markets. In order to take advantage of the continuing growth in demand for collagen casings, we will be investing in additional capacity during 2010.
The Group's overall financial position remains healthy and net debt has decreased since 30 June 2009 as a result of the Group's positive cash generation. We anticipate a strong finish to the year.
The Group expects to report its preliminary results in mid February 2010.
For further information, please contact:
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Devro plc |
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Peter Williams, Finance Director |
01236 879191 |
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Buchanan Communications |
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Diane Stewart /Charles Ryland /Carrie Clement |
0207 466 5000 |
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