TIDMESNT
RNS Number : 0195M
Essentra plc
19 May 2022
ESSENTRA PLC
("Essentra" or "the Company")
A leading global provider of essential components and
solutions
ANNUAL GENERAL MEETING - TRADING UPDATE
At Essentra plc's ("Essentra" or "the Company") Annual General
Meeting ("AGM") today, Paul Lester, Chairman, will make the
following statement.
-- The strategic reviews of Filters and Packaging are progressing in line with expectations
-- The Group had a strong start to the year, with like-for-like
("LFL")(1) Q1 revenue growth of 16.4%, supported by pricing
initiatives and volume growth
-- Components delivered another strong performance with growth
of 23.9% in Q1, +15.9% on a LFL trading day adjusted basis
-- Packaging achieved LFL Q1 revenue growth of 11.1%, supported
by the continued recovery of healthcare markets
-- Filters delivered LFL Q1 revenue growth of 15.9% benefitting from its 'game changers'
-- The Company is expecting to deliver FY 2022 adjusted
operating profit in line with the Board's expectations
The Group had a strong start to the year with LFL(1) revenue
growth of 16.4% in Q1 2022, compared to the same period in the
prior year. April trading continued to show good momentum and order
book trends remain positive across the Group. The Company expects
to deliver FY 2022 adjusted operating profit in line with the
Board's expectations.
Trading update
The Components division had a strong start to the year. Q1 LFL
revenue on a trading day adjusted basis increased by 15.9% when
compared to Q1 2021. This performance continues to build on the
positive momentum seen throughout 2021. Whilst we delivered good
growth in April and demand remains positive in our end markets,
growth may moderate as comparatives become tougher. We have a
strong order book and we continue to mitigate cost inflation
through pricing actions.
The Packaging division's growth accelerated to 11.1% in Q1 when
compared to Q1 2021. This performance was supported by the
continued recovery in healthcare markets and the positive impact of
price increases which is helping offset cost inflation. This trend
continued in April, and we are closely managing supply chain
challenges, which are impacting the availability of raw materials.
The division is progressing its sustainable product offering and
announced two strategic partnerships in the period.
The Filters division has delivered another strong performance in
Q1. LFL revenue increased by 15.9% compared to Q1 2021. April
continues to deliver positive growth and pricing surcharges are
being agreed with customers to mitigate cost inflation. We are
focused on developing and launching proprietary ECO(2) and Tobacco
Heated Products and continue to identify and secure new outsourcing
opportunities. The China JV continues to gain momentum and has
increased production volume in line with expectation. We are also
supporting multi-national companies with business continuity plans,
as their plants remain closed in Ukraine.
Outlook
The Group continues to manage supply chain and inflationary
pressures and remains focused on delivering its commercial and
strategic priorities. Whilst growth rates may moderate as
comparatives become tougher, the Company expects to deliver
adjusted operating profit in line with the Board's
expectations.
Notes
1. Excludes the impact of acquisition and foreign exchange
2. A higher degradability and non-plastic Filter option. ECO
Flute, ECO Active, ECO Sensation, ECO Cavitec and ECO Cavitec
Sensation
Enquiries
Essentra plc Tulchan Communications
LLP
Jack Clarke, Chief Financial Officer Olivia Peters
Designate
Claire Goodman, Group Investor Relations Martin Robinson
Manager
Tel: +44 (0)1908 359100 Tel: +44 (0)20 7353 4200
Notes to Editors
About Essentra plc
Essentra plc is a FTSE 250 company and a leading global provider
of essential components and solutions. Organised into three global
divisions, Essentra focuses on the light manufacture and
distribution of high volume, enabling components which serve
customers in a wide variety of end-markets and geographies.
Headquartered in the United Kingdom, Essentra's global network
extends to 34 countries and includes 8,327 employees, 47 principal
manufacturing facilities, 28 sales & distribution operations
and two research & development centres. For further
information, please visit www.essentraplc.com.
Essentra Components
Essentra Components is a global market leading manufacturer and
distributor of plastic injection moulded, vinyl dip moulded and
metal items. Operating in 25 countries worldwide, 13 manufacturing
facilities and 23 sales & distribution centres serve more than
79,000 customers with a rapid supply of low cost but essential
products for a variety of applications in industries such as
equipment manufacturing, automotive, fabrication, electronics and
construction. The division also includes the Reid Supply business,
which provides a wide range of branded hardware supplies to a broad
base of industrial customers, largely located in the US
Mid-West.
Essentra Packaging
Essentra Packaging is one of only two multicontinental suppliers
of a full secondary packaging range to the health and personal care
sectors, with 23 facilities across three geographic regions. The
division's innovative products include cartons, leaflets,
self-adhesive labels and printed foils used in blister packs, which
help customers to meet the rapidly-changing requirements of these
end-markets and can also be combined with Essentra's authentication
solutions to help the fight against counterfeiting.
Essentra Filters
Essentra Filters is the only global independent cigarette filter
supplier. Currently headquartered in Singapore, the division has 12
sites across nine countries, including two innovation centres,
providing a flexible infrastructure strategically positioned to
serve the tobacco sector. The business supplies a wide range of
value-adding high-quality innovative filters, packaging solutions
to the roll your own segment and analytical laboratory services for
ingredient measurement to the industry: Essentra's offering also
includes Heat Not Burn and e-cigarette solutions to the rapidly
evolving market for Next Generation Products. The division also
includes the Tear Tapes business, which is globally recognised as
the leading manufacturer and supplier of pressure-sensitive tear
tapes, that are largely used in the tobacco, e-commerce, food and
beverage and specialist packaging sectors.
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END
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