(Alliance News) - Devro PLC on Wednesday reported slightly lower half-year earnings and said it has kicked off a search for a new chief financial officer after Jackie Callaway was poached by thread maker Coats Group PLC.
Callaway replaces outgoing Simon Boddie when he retires from Coats in March 2021. Sausage casings maker Devro said it has started the process to find a replacement.
Devro shares were up 5.0% at 150.40 pence each in London on Wednesday afternoon. Coats was trading 0.9% lower at 55.50p.
In the six months to the end of June, Devro's revenue slipped to GBP119.0 million from GBP119.2 million the year before. Meanwhile, pretax profit fell slightly by 0.7% to GBP13.5 million from GBP13.6 million in the year prior.
Despite group revenue slipping, Devro reported a strong performance in Latin America, Russia and South East Asia pushing volume growth up by 19% in emerging markets. Mature markets, however, continued to lag, with volumes down 6% due to distributor destocking in Europe and Covid-19 related supply chain issues in the US.
Devro also said that edible collagen volumes were up by 1.4% year-on-year, following "good underlying momentum affected by Covid-19" in the second quarter.
"Our first half performance demonstrates the robust nature of our business and the progress made on our strategic priorities. We generated strong growth in emerging markets by leveraging our product and service strengths through our structured approach, underpinned by our three-year commercial plans," said Chief Executive Rutger Helbing.
Devro opted not to use UK government financial support schemes, relying on internal cost savings such as the postponement of its final dividend.
"The business continues to deliver cost savings and operational improvements which have offset the impact of additional Covid-19 related costs; and the closure of the Bellshill site is on track," Helbing added.
The Chryston-headquartered company explained that the postponed 2019 final dividend of 6.3 pence will be paid in the form of an interim dividend on October 2. The 2020 interim dividend of 2.7p, flat on the year prior, will be paid the following January 15.
By Neetika Kurup; neetikakurup@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Coats (COA)