(Alliance News) - Essentra PLC said Friday that trading for the second quarter of 2020 was much more affected by the Covid-19 pandemic by the first, however the FTSE 250 plastic and fibre products maker noted improvement in revenue as the quarter progressed.
In April, Essentra's like-for-like revenue declined by 17% but its performance improved from there, with a 10% drop in May and for June it is expected to fall just 1%.
For the second quarter ended June 30, Essentra expects a 10% like-for-like revenue decline, while for the six month period the decline is anticipated to be 9%.
For the Components division alone, the start of the second quarter featured an accelerated slowdown in customer demand, with like-for-like revenue down 24% in April but improving over the next two months.
Looking ahead, Essentra expects some continued some disruption to trading in the coming months, and has continued to withdraw its annual guidance due to it still being too early to determine Covid-19's effect on the group's performance.
In Components, recent order book trends are positive, with the month of June seeing a 10% improvement compared to May, while the order book for Packaging being higher than the same period the prior year.
For the third quarter, Essentra expects the trend of revenue improvement to continue from the second quarter. In addition, with effect on Wednesday, full salaries for the group's board and leadership has been reinstated.
"I am very proud of the way the whole Essentra family has navigated through the last three months. We have achieved a high degree of stability by focusing consistently and from the beginning on our three pillars of employee wellbeing, customer support and cash conservation. We have seen an increasing monthly sales trend this quarter, and barring a major second wave to the pandemic, we expect this trend to continue in the third quarter," said Chief Executive Paul Forman.
Essentra will publish its interim results on August 28.
Shares in Essentra were up 3.0% at 301.80 pence on Friday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Essentra (ESNT)