Devro 2021 profit on target with earnings per share ahead of estimates

(Alliance News) - Devro PLC announced on Wednesday that full-year operating profit would be in line with expectations for 2021.

The Chryston, England-based collagen food products manufacturer did not specify what its operating profit estimate was for the full year, but said it would be in excess of 10% growth on a constant currency basis. It previously reported an operating profit of GBP20.3 million in the first half of 2021.

Annual earnings per share are expected to come in "modestly" ahead of estimates of 16.9 pence, owing to a one-off tax benefit as a result of a change to the UK corporate tax rate.

Devro said revenue growth was "encouraging" at around 5% on a constant currency basis. Behind the growth were positive developments in volume, price and mix, which led to strong performances in mature and emerging markets.

The manufacturer's net debt as of the end of December was GBP90 million, with a net debt to earnings before interest, tax, depreciation and amortisation ratio of around 1.4 times. Cash generation in the final quarter was strong, Devro said.

Devro's share price rose by 4.5% to 211.00 pence each in London on Wednesday morning.

Full-year results for 2021 will be released on March 2.

By Elizabeth Winter; elizabethwinter@alliancenews.com

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