For immediate release 8 November 2011
Devro plc
(the "Group")
Interim Management Statement
Devro plc, the world's leading manufacturer of collagen
products for the food industry, today provides an
Interim Management Statement in respect of the period from 1
July 2011 to date.
The Group is on course to meet Board expectations for the
current year.
Sales volumes have shown strong growth compared to the
corresponding period last year. The momentum seen in Quarter
2 has continued, helped by growth in Western Europe, Eastern
Europe and Russia and with the new premium Select range, in
particular, making encouraging progress in Japan. Latin
America and South East Asia have also shown good growth, with
volumes in the UK and Australia declining slightly. Whilst
the market is very competitive in light of the wide range of
pressures impacting food manufacturers, we have benefited
from recent work on pricing.
As previously reported, the 2011 capital investment programme
involves expenditure of approximately £45 million, with plant
upgrades underway in Scotland, Czech Republic, Australia and
the US. These projects remain on track to both enhance
production efficiencies, and provide additional capacity
through to 2013.
The new co-generation plant in Australia will be commissioned
by the end of the year, and the savings generated will
partially offset the expected energy cost increases across
the Group in 2012.
As expected, net debt has risen since 30 June 2011,
reflecting the substantial ongoing capital expenditure. As
previously announced, a new £51million revolving credit
facility was renegotiated on 30 September 2011 with a
syndicate of four banks for a period of 5 years.
The two year project to upgrade the Enterprise Resource
Planning system has now been successfully completed and this
will support decision making across the Group.
Three manufacturing locations achieved accreditation to
FS22000, the international standard defining food safety
management requirements for organisations in the food chain
and we expect the remaining site to be qualified in the near
future.
As previously announced, the sale of Devro GmbH, the German
distribution business, to ViskoTeepak Holding AB Ltd was
completed at the end of September 2011. The cash purchase
price was €1.9 million based on net book value and is subject
to final adjustment.
For further information, please contact:
Devro plc
Peter Page, Chief Executive
Simon Webb, Finance Director Tel No: 01236 878205
Buchanan
Diane Stewart/ Carrie Clement/
Charles Ryland Tel No: 020 7466 5000/0131 226 6150
Further information on Devro can be found on the company's
website: www.devro.com