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Devro PLC on Friday hailed good trading in 2022, with strong operating margins.
The sausage casing manufacturer, based near Glasgow, said it expects revenue of £290 million, reflecting growth of 15% year-on-year. Revenue in 2021 was £252.4 million. Pretax profit was £36.9 million.
‘Constant currency revenue growth was driven by higher pricing, reflecting successful recovery of cost inflation, as well as good volume increases particularly in our mature markets,’ Devro explained.
Devro said the second half of the year delivered strong operating margins, reflecting ‘the benefits of management’s pricing actions, operating efficiency and foreign exchange tailwinds’.
As a result, adjusted operating profit is expected to be ahead of the board’s expectations.
Group covenant net debt stood at around £90 million at year end.
In August, Devro had reported a fall in pretax profit in the six months to June 30 to £15.9 million from £18.4 million in the first half of 2021. Revenue improved to £129.8 million from £119.9 million.
Shares were up 0.2% at 308.45 pence each on Friday morning in London.
By Xindi Wei, Alliance News reporter
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