Devro third-quarter trading "encouraging" amid strategy execution

(Alliance News) - Chryston, Scotland-based Devro PLC on Tuesday said trading in the third quarter of its financial year was "encouraging" thanks to the company executing its strategy of increasing volumes and prices.

The producer of collagen products for the food industry said constant currency revenue growth in the third quarter ended October 31 was above that seen in the first half.

Devro attributed this to the successful execution of its current growth strategy that included volume growth, higher prices and an "improved mix."

The company also added that it continued to grow in North America and "improved sequential trends" in Continental Europe, the UK & and Ireland.

Furthermore, growth in emerging markets such as Latin America, the Middle East and Africa was particularly strong.

The company said it is alert to global supply chain issues, inflation and headwinds by foreign exchange rates.

However, Devro stated that it is mitigating inflationary pressure through pricing action and tight cost management.

The company stated that full-year expectations remain unchanged and that its outlook remained positive.

Shares were up 1.4% to 221.00 pence each on Tuesday afternoon in London.

By Abby Amoakuh; abbyamoakuh@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.