The Devro Board is proposing a final dividend of 6.3p per share (2019: 6.3p) bringing the total for the year to 9.0p per share (2019: 9.0p). Subject to shareholder approval at the Annual General Meeting in April, the dividend will be paid on 1 October 2021, to those shareholders on the register at 20 August 2021.
Other financial highlights include:
Volume of edible collagen casings increased 1%
o Emerging markets up 13%: driven by Latin America, Russia and South East Asia, reflecting our targeted growth agenda
o Mature markets down 5%: growth of 9% in North America offset by COVID-19 related decline in food services sector and distributor destocking in Europe
o COVID-19 negative impact estimated at 2%
Group revenue marginally lower than prior year due to adverse mix and other products declining
Underlying operating profit of £40.8m, up 4% on prior year, and operating margin increased 90 bps to 16.5% benefiting from cost savings
Underlying basic earnings per share up 9% to 16.5p (2019: 15.2p)
Robust free cash flow generation leading to covenant net debt of £109.5m (2019: £123.8m), representing net debt to EBITDA ii of 1.8x (2019: 1.9x
