Strong non-UK sales, Devro announces
Collagen casing specialist Devro said that business is continuing to grow in non-UK sales, which has offset the slow trading in domestic markets.
The company issued an interim management statement, for the period from 1 January 2012 to date, ahead of the annual general meeting. Chairman Steve Hannam said that the company had shown solid growth and that it was making good progress.
He said: “Devro has continued to make good progress in the year-to-date, with continuing sales growth and a positive impact from changes in sales mix.
“Total sales are ahead of the comparable period last year with Eastern Europe, Russia, Japan, south-east Asia and Latin America all demonstrating solid growth, partially offset by slow trading conditions in the UK. Sales of our premium Select range continue to increase in Japan and Europe and represent a growing proportion of the group’s edible collagen sales.
“Manufacturing performance was slightly below expectations early in the year, but recent performance is much improved. The newly installed lines in Scotland are in full production and product development work continues on the new line in the USA. Capital investment in additional capacity in the Czech Republic is proceeding as planned.
“The financial position of the group continues to be strong and we remain confident that it is on track to meet the board’s expectations for the full year.”
Chief executive Peter Page said: “The continued growth in volume and value of sales, across a wide variety of markets, is most encouraging and reflects well on our strategy for long-term growth.”
Last month the company unveiled new branding, which was designed to pull together its worldwide branding and underpin a single, coherent global strategy. It also announced that a core strategy team would move to a newly created London office to make it easier to explore new market opportunities for growth outside the UK.