FULL YEAR RESULTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2ND MARCH 2021

2020 HIGHLIGHTS

  • • Good progress made on strategic and financial priorities

  • • Volumes up 1% with robust trading despite COVID-19 (net negative impact c.2%)

  • • Strong volume growth in emerging markets, up 13%

  • • Headwinds in certain mature markets driven by weaker food service demand due to COVID-19 and European distributor destocking

  • • Continued delivery of cost savings with operating margins showing 90 bps improvement

  • • Robust cash generation resulting in a significant reduction of net debt to £110m, down almost £15m on last year

  • • Final dividend of 6.3p declared, 9.0p total for 2020, flat on prior year

COVID-19 UPDATE

GUIDING PRIORITIES

01

Health and safety of our colleagues and the communities we live in

02

Contribute in a positive way to the food supply chain

Maintain a robust financial position

SUPPLY

  • • Supply maintained throughout the year despite some challenges mainly related to hide and workforce availability

  • • Temporary additional costs to manage supply offset by cost savings

MAKE

  • • All sites were operational throughout the pandemic - production maintained at planned levels

  • • Strict protective measures including H&S rules, track & trace and quarantine processes

DEMAND

  • • H2 retail demand remained elevated, underpinned by further lockdowns

  • • In H2 ongoing impact on food service demand

  • • We estimate net negative volume impact for full year of c.2%

GOOD PROGRESS ON STRATEGIC PRIORITIES

  • • Sales cycle management and three year plans delivering underlying growth

  • • Investment in commercial resource, additional 10% increase in headcount, mainly in emerging markets aligned with growth prospects

  • • Good progress with strategic customer wins

  • • Bellshill closed, final stages of project on track

  • • Continued delivery of cost savings

  • • Focus on continued operational improvements

  • • Integrated Business Planning process operational and working

  • • Enhanced internal communications and employee engagement

  • • Developing enhanced ESG plans

DRIVING OUR AMBITION AND VISION

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original document
  • Permalink

Disclaimer

Devro plc published this content on 02 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 March 2021 07:10:06 UTC.