Sausage casings manufacturer Devro has reported positive half year results, with 11% revenue increase year-on-year to £125.5 million and volume uplift of 7%.
In the UK and Ireland, volume sales were up 6%, underpinned by an increased market share.
Devro notes that sterling’s weaker value against both the euro and the US dollar in the first half of the year aided its volume growth in Europe and the Americas, where total revenue reached 41% and 26% respectively. The same was reported in the Asia/Pacific region too, with 33% total revenue.
Underlying operating profit reached £18.1 million, in line with the year prior, while reported operating profit peaked at £15 million, higher than the year before, due to reduced exceptional items.
In China, volume sales grew 125%, following growing demand and the completion of a new plant, while in Russia, volume growth was up by19%, with share gains and increased output aided by “key customers”.
In North America, volume growth was unchanged, as according to Devro, the market consolidated with “competitive pressure on leading brands”. In Latin America, volumes suffered a 35% drop, following change in source of products in 2016.
In terms of cash flow, Devro reported continued strong cash generation, with operating cash flow of £23.9 million.
The report also demonstrated improved EBITDA, along with lower capital expenditure and exceptional spend.
The interim dividend was maintained at 2.7p per share, in line with the year before.
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