Devro Plc announces an interim dividend of 2.9 pence per share (2021 interim dividend: 2.8 pence) will be payable on 13 January 2023 to ordinary shareholders on the register at the close of business on 2 December 2022. The final dividend of 6.5 pence per share in respect of the year ended 31 December 2021 was paid on 22 July 2022 and amounted to £10.9m.
Other Financial Highlights:
Group revenue up 8.3% to £129.8m on prior year and constant currency up by 8.8%, primarily driven by growth in mature markets reflecting continued success of the strategy, and the initial benefits of the pricing actions
Volume of edible collagen casings up 4.5%:
Mature markets volume up 7.6% driven by strong growth in Continental Europe & West, North America and UK & Ireland offset by weaker market conditions in Japan and Australia
Emerging market volume down 0.9%, against a strong comparator and due to temporary manufacturing constraints, mainly affecting China and Latin America
Underlying operating profit of £18.6m, down 8.4%, with constant currency at £20.4m, up 0.5%. The underlying operating margin decreased to 14.3% (H1 2021: 16.9%) but on a constant currency basis was 15.6%. Operating profit reflects good operating leverage offset by inflationary pressure, which will be fully offset, mainly by higher selling prices in the full year, and higher costs to drive growth including new product development.
Underlying basic earnings per share down 13.8% to 7.5p
Free cash flow generation of £3.2m (H1 2021: £9.4m) reflecting good underlying cash generation, the normal seasonal increase in working capital and slightly higher capital expenditure to support the ambitious growth plans.
Covenant net debt of £95.3m (H1 2021: £103.1m, FY 2021: £88.6m), representing net debt to EBITDA of 1.6x (H1 2021: 1.6x, FY 2021: 1.4x). £5.1m of the year-on-year increase relates to a revaluation of the Group's US dollar borrowings. It is expected that the year-on-year progress for the full year.
