ESSENTRA
PLC
("Essentra", the "Group" or
the "Company")
AGM TRADING
UPDATE
Board's expectations for
FY2024 unchanged
Essentra plc, a leading global
provider of essential components and solutions, today provides a
trading update for the four months ended 4 May 2024 (the "period"),
ahead of its Annual General Meeting, which is to be held at 13:00
BST today.
The Group is on track to
deliver full year adjusted1 operating profit in line
with the Board's expectations.
Trading update
As anticipated the Group has
delivered a sequential improvement in sales performance. Average
sales per trading day grew by c.5% in the period when compared to
Q4 2023 on a like-for-like2 ("LFL") basis.
Group revenue was down 1.2% in the
period, compared to the same period in 2023, on a trading day
adjusted basis. LFL sales reduced by 5.0% reflecting a
comparatively stronger start to 2023 in the Americas and EMEA
partly offset by 3.8% positive contribution from the acquisition of
BMP s.r.l ("BMP TAPPI").
Consistent with the market
environment outlined at the FY2023 results in March,
Americas regional performance is encouraging, with
greater stability of distributor volumes. APAC region is stable
sequentially when compared to the end of 2023, with a greater level
of recovery signalled in the China export market to the rest of
Asia. EMEA region is seeing mixed trading conditions in line with
wider industrial production trends. West Europe, particularly
Germany, is seeing lower volumes, whilst Turkey is seeing a
stronger growth trajectory.
Essentra has maintained strong
operating margins in the period, demonstrating continued resilience
and the Company's ability to manage changes in the
macro-environment through the cycle.
Outlook
Board expectations for 2024 remain
unchanged. Consistent with the outlook shared at the FY2023
results, Management anticipate performance to be second half
weighted with an improvement in volumes in the second half of the
year.
The Group remains well positioned to
benefit from a recovery in its end-markets when volume growth
returns to normalised levels, given the actions that have been
taken to right-size the cost base and optimise the business to
deliver operating leverage. The Group is proactively responding to
changes in market conditions, and continues to invest in value
enhancing growth initiatives, driving operational effectiveness.
Management remain confident in making further progress towards
Essentra's medium-term targets in 2024.
Board Update
The Company has separately announced
today the appointment of Steve Good to the Board as independent
non-executive director and chair designate effective from 1 July
2024. Paul Lester will stand down as chair and from the Board on 1
November 2024 after nine years, and in accordance with Provision 19
of the 2018 UK Corporate Governance Code.
Notes
1.
On a continuing operations basis, before
amortisation of acquired intangible assets and adjusting
items.
2.
Like-for-like ("LFL") excludes the impact of
BMP TAPPI acquisition and foreign
exchange
Enquiries
Essentra plc
Jack Clarke, Chief Financial
Officer
Claire Goodman, Head of Investor
Relations
Emma Reid, Company
Secretary
Tel: +44 (0)1908 359100
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Notes to Editors
About Essentra plc
Essentra plc is a FTSE 250 company
and a leading global provider of essential components and
solutions, focusing on the manufacture and distribution of plastic
injection moulded, vinyl dip moulded and metal items.
Headquartered in the United Kingdom,
Essentra's global network extends to 28 countries worldwide and
includes c.3,000 employees, 14 manufacturing facilities, 24
distribution centres and 33 sales & service centres serving
c.69,000 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,
medical and renewable energy.
For further information, please
visit www.essentraplc.com
Cautionary forward-looking
statement
These results contain
forward-looking statements based on current expectations and
assumptions. Various known and unknown risks, uncertainties and
other factors may cause actual results to differ from future
results or developments expressed or implied from the
forward-looking statements. Each forward-looking statement speaks
only as of the date of this document. The Company accepts no
obligation to revise or update these forward-looking statements
publicly or adjust them to future events of developments, whether
as a result of new information, future events or otherwise, except
to the extent legally required.