Devro announces decline in pre-tax profits
Scottish manufacturer of collagen sausage casings Devro has revealed pre-tax profit fell 4.5% to £37.5m for the full year ended 31 December 2013.
Revenue rose 1%, from £241.1m in 2012, to £242.7m last year, with ebitda up 4% to £60.6m.
In the company’s latest trading statement Devro also revealed plans to build a £50m manufacturing plant in China as it looks to continue its overseas expansion.
Steve Hannam, chairman, Devro, said: “Devro made considerable progress in 2013, despite a more difficult trading background, as we completed the upgrade at our world-class facility in the Czech Republic and established the programme of investment at our plant in the USA.
“In addition, today we are pleased to announce plans to invest £50m to build a manufacturing plant in China. These key investments will ensure Devro is in a strong position to benefit from the significant opportunities in the growing global casings market, and the increase in the dividend reflects the board’s confidence in the group’s strategy and its future prospects.”
The firm said profits were effected by a number of factors, including slow demand in some of its key markets, “manufacturing issues in the USA and a sharp rise in raw material costs”.
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