29 Apr 2021 07:00
Devro plc
Trading Update
Devro plc ("Devro" or the "Company"), one of the world's leading manufacturers of collagen products for the food industry, issues the following trading update for the period 1 January 2021 to the current date ahead of its Annual General Meeting today.
Current trading
Q1 2021 edible collagen volumes increased 4.6% compared to the prior year driven by continued good underlying momentum and execution of our growth initiatives. Emerging markets were up 15% led by strong growth in China, South East Asia and Latin America. Mature markets were flat on the prior year, an improvement on the trends seen in 2020. Japan and North America both delivered strong growth but this was offset by lower demand in the UK & Ireland which had benefitted from elevated retail volumes in March 2020 as the pandemic took hold.
Financial position
The Group delivered strong cashflows during Q1, ending the quarter with comparable levels of leverage to 2020 year-end, including the dividend payment made in January 2021.
The Group repaid the US$25 million private placement due on the 19 April 2021 using a combination of available cash resources and RCF drawings. Post this repayment the Group maintains significant liquidity but with a lower average cost of borrowing.
The Group's remaining debt facilities consist of a committed £105 million Revolving Credit Facility (RCF), which expires in 2023, and US$75 million of private placements expiring April 2024 (US$50 million) and 2026 (US$25 million).
Outlook
We are encouraged by the good volume growth performance in Q1 and, whilst we expect this trend to continue we remain mindful of the uncertainties arising from the ongoing COVID-19 pandemic and likely foreign exchange headwinds. As a result, our expectations for 2021 remain unchanged.
ENDS
Contacts:
Devro plc
Rutger Helbing | Chief Executive Officer | Tel: 020 3865 7637 |
Rohan Cummings | Chief Financial Officer | Tel: 020 3865 7637 |
FTI Consulting
Richard Mountain Nick Hasell | Tel: 020 3727 1340 |
Dividend: In the Company's announcement on 2 March 2021 of its results for the year ended 31 December 2020, the Board proposed a final dividend of 6.3p per share (the "2020 Final Dividend") to be paid on 1 October 2021, to those shareholders on the register at 20 August 2021, subject to shareholder approval at the Annual General Meeting in April 2021. The Board has subsequently resolved to recommend the payment of the 2020 Final Dividend be brought forward from 1 October 2021 to 20 July 2021, to those shareholders on the register at 11 June 2021.