The Devro Board is proposing a final dividend of 6.3p per share (2018: 6.3p) bringing the total for the year to 9.0p per share (2018: 9.0p). Subject to shareholder approval at the Annual General Meeting in April, the dividend will be paid on 7 May 2020, to those shareholders on the register at 27 March 2020.
Other financial highlights include:
o Strong growth in emerging markets, up 13% in the second half and 7% for the full year
o Continued strong growth in North America, offset by a weak demand environment in the UK, Japan and Europe, with mature marketsv declining 3% for the full year
o Full year edible collagen volumes were flat, with the Group delivering volume growth of 1% in the second half
Cost savings of £7.4 million achieved - ahead of original expectations
Underlying operating profit £39.1 million and operating margin 15.6% marginally below 2018 with the benefit of cost savings and FX offset by less favourable country mix and sales from other products
Underlying basic earnings per share increased by 4% to 15.2 pence
Strong free cash flow generation with covenant net debt EBITDA ratio reducing to 1.9 times at 31 December 2019 (2018: 2.2 times). Improved free cash flow of £30.8 million (2018: £11.2 million)
Statutory loss before tax includes Bellshill closure cost and a non-cash impairment charge of £45.9 million primarily related to the US and China plants
Continued progress on building organisational capabilities to deliver:
o Sustainable revenue growth
o Cost effective capacity enhancements to support growth ambition
o Further efficiency savings
