Last checked at 14 Jun 2023 07:00
14 June 2023
Victrex plc - Trading update
Victrex plc is an innovative world leader in high performance polymer solutions, delivering sustainable products which support CO2 reduction and bring environmental and societal benefit in multiple end-markets. Today's trading update covers the period ending 31 May 2023.
Year-to-date (YTD) Group volume & revenue
At the Group's interim results we signalled that, in line with the wider Chemical sector, ongoing macro-economic weakness and industrial customer destocking were impacting performance in several end markets. During the first half, Group volumes declined by 14%.
Whilst the Group remains ready to benefit from a macro-economic recovery, latest indicators suggest these current headwinds will now continue over the summer and at least until the end of FY 2023 in September.
Despite good progress in Medical, ongoing industrial headwinds mean YTD Group volumes are now tracking in excess of 20% down, compared to the record prior year. YTD Group revenue is tracking down by a mid-single digit percentage rate. If current run-rates continue, full year revenue would be down between 6%-10%.
For Q3 as a whole, we anticipate volumes will be approximately 800 tonnes (Q3 2022: 1,323 tonnes).
Outlook
In our Outlook at the interim results stage, we signalled that delivering full-year adjusted (pre-exceptional) profit before tax (PBT) in line with expectations assumed a step up in demand during the latter part of the second half, driven by macro-economic conditions.
Whilst we are seeing progress on gross margin, driven by pricing, sales mix, currency and easing energy costs, Group adjusted PBT to 31 May 2023 was approximately £53m. With no step up in demand going into the final quarter currently visible, and the resulting lower industrial revenue expectations, our full year adjusted PBT is now expected to be between £80m-£85m.
Victrex will report its Q3 Interim Management Statement on Thursday 6 July 2023.
Analyst & investor conference call:
A conference call with management will take place this morning, 14 June 2023, at 08.00am BST. The call can be accessed via the following link:
https://services.choruscall.za.com/DiamondPassRegistration/register?confirmationNumber=2616372&linkSecurityString=6aee7987c
Inside information:
This announcement contains inside information. The person responsible for making this announcement is Jane Brisley, General Counsel & Company Secretary.
Enquiries:
Victrex plc:
Andrew Hanson, Director of Investor Relations, Corporate Communications & ESG +44 (0) 7809 595831
Jakob Sigurdsson, Chief Executive +44 (0) 1253 897700
Ian Melling, Chief Financial Officer +44 (0) 1253 897700
About Victrex:
Victrex is an innovative world leader in high performance polymer solutions, focused on the strategic markets of Automotive, Aerospace, Energy & Industrial, Electronics and Medical. Every day, millions of people rely on products or applications which contain our sustainable materials, from smartphones, aeroplanes and cars to oil & gas operations and medical devices. With over 40 years' experience, we are moving beyond the polymer into semi-finished and finished products which shape future performance for our customers and our markets, provide environmental and societal benefit for customers and drive value for our shareholders. Find out more at www.victrexplc.com