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Essentra eyes adjusted operating profit fall in line with expectations

ALN

Essentra PLC on Thursday said revenue continued to be boosted by pricing and strategic targeting as it expects to report an adjusted operating profit in line with market consensus.

The Oxford, England-based manufacturer of plastic and metal hardware components expects to report 2025 revenue growth of 2.5% on a constant currency like-for-like basis.

Essentra said revenue in the fourth quarter was up 4.7% on a constant currency like-for-like working day-adjusted basis, consistent with third quarter performance. ‘Revenue growth continues to be underpinned by pricing, strategic targeting of faster-growing end-markets such as energy transformation and digital infrastructure, as well as the easing of prior year comparatives,’ the firm said.

Meanwhile revenue on a reported basis including the impact of foreign exchange is expected to be flat in 2025. It was £302.4 million in 2024.

The firm said: ‘Europe, Middle East & Africa excluding Turkey delivered moderate growth against soft prior year comparatives despite mixed market conditions. The Americas delivered low single digit growth in the quarter, driven by pricing initiatives and stable distributor end-channels. The Asia Pacific region saw a slight decline in the quarter as anticipated, due to large one-off projects in the prior year driven by market dynamics in China.’

Further, Essentra expects to post adjusted operating profit for 2025 to be in line with market expectations, citing a range of between £32.0 million and £32.4 million which would be at least 19% lower than £40.1 million in 2024.

Essentra shares fell 0.9% to 95.48 pence each on Thursday afternoon in London.

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