Building for the future

2021 Half Year Results - 30th July 2021

HY 2021: AGENDA

  • Group Summary - Paul Forman
  • Financial Performance - Lily Liu
  • Divisional Performance & Initiatives - Paul Forman
  • Outlook and Reprise - Paul Forman

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Encouraging H1 performance, with a positive full year outlook, focused on delivering organic growth and accretive M&A

  • Well-positionedfor sustained growth in all divisions with clear and successful strategies based on innovation, sustainability and strong customer partnerships
  • Trend of positive momentum continued in H1 with LFL revenue growth of 7.5%
    • Components - continuation of improving trend since onset of pandemic led to strong H1 performance
    • Packaging - impact to the underlying market continued to affect H1, the market should return to moderate growth in H2
    • Filters - strong performance seen in H1, led by outsourcing contracts won
  • Margin expansion in Q2 (vs Q2 2020 and Q1 2021) across all Divisions driven by self-help actions and operational leverage, despite cost inflation
    • Price increases being implemented to offset cost inflation
    • Packaging delivered strategic initiatives on footprint optimisation
  • Value enhancing and strategic acquisition of Hengzhu announced in Components, 3C! integration on plan in Packaging
  • HY interim dividend 2.0p, progressive policy adopted going forwards

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HY 2021

FINANCIAL PERFORMANCE

Lily Liu - Chief Financial Officer

FINANCIAL HIGHLIGHTS

Encouraging financial performance and position, provides firepower for strategic optionality

  • Like-for-like(LFL) H1 revenue growth:
    • 7.5% vs H1 2020
    • -1.9%vs H1 2019 (Q2 +2.5%)
  • H1 2021 adjusted operating profit (vs H1 2020) up 34.0% to £35.7m; adjusted operating margin +130bps to 7.5% (at constant FX)
  • Q2 2021 operating margin 9.8%. Expansion (vs Q2 2020 and Q1 2021) across all Divisions
  • Adjusted basic EPS higher by 39.9% (at constant FX) at 7.7p
  • Net debt to EBITDA ratio decreased to 1.7x, 1.5x on a pre-IFRS16 basis
  • Issue of $250m private placement debt in July, providing optimal long-term funding

LFL Revenue Growth Trend

15%

10%

5%

0%

-5%

-10%

-15%

Q1-20Q2-20Q3-20Q4-20Q1-21Q2-21

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Essentra plc published this content on 15 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 February 2023 08:04:00 UTC.