REG - Essentra plc - AGM Trading Update

EssentraAnnouncement

16/05/2023 07:00

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RNS Number : 4767Z  Essentra plc  16 May 2023

ESSENTRA PLC

AGM TRADING UPDATE

FY2023 expectations remain unchanged

Essentra plc ("Essentra" or the "Company"), a leading global provider of
essential components and solutions, today provides a trading update for the
four months ended 6 May 2023, ahead of its Annual General Meeting, which is to
be held at 13:00 today.

 

Trading update

Consistent with the market environment previously outlined at the FY2022
results, performance has remained robust in our European business during the
period, whilst distributors have continued to show signs of destocking,
impacting the US in particular. There are signs of improvement in China, which
started towards the end of the first quarter.

On a like-for-like(1) ("LFL") trading day adjusted basis, Group sales were
down -9.0% in the period, compared to the same period in 2022. This reflects a
particularly strong comparator in the prior year, with significant end-market
recovery including improving supply chains which enabled the business to
recover historically high orderbook backlogs experienced at the beginning of
2022.

Essentra has sustained strong operating margins in the period, demonstrating
the underlying resilience of the Company's business model. Margins have been
supported by proactive implementation of pricing actions and cost management
initiatives, including efficiencies in operating costs as well as central
overheads.

As anticipated, the business is seeing improved trends since the start of the
second quarter. New daily order intake levels are demonstrating growth
relative to FY2022, and the order book provides a good level of visibility
into the second half of the year.

The Wixroyd business acquired in December 2022 is performing in line with
management expectations and integration is on track. Essentra continues to
manage a strong pipeline of bolt-on M&A opportunities, which it is
pursuing with a highly disciplined approach.

 

Outlook

The Board remains confident in delivering adjusted operating profit for the
first half of the year in line with its expectations, and the 2023 full year
outlook remains unchanged. The business has the ability to manage volume
impacts through the implementation of pricing actions and careful cost
management, validated by Essentra's historical through-cycle margin
resilience.

Essentra remains focussed on delivering strong profit margins, servicing its
customers and continues to invest in organic growth initiatives, whilst
actively managing a strong pipeline of value enhancing bolt-on M&A
opportunities, supported by the Company's strong balance sheet.

 

( )

(Notes:)

(1.    ) (LFL excludes the impact of acquisitions and foreign exchange)

Enquiries

 Essentra plc                                Teneo
 Jack Clarke, Chief Financial Officer        Olivia Peters
 Claire Goodman, Investor Relations Manager  essentra@teneo.com

 Emma Reid, Company Secretary
 Tel: +44 (0)1908 359100                     Tel: +44 (0)20 7353 4200

 

Notes to Editors

About Essentra plc

Essentra plc is a FTSE 250 company and a leading global provider of essential
components and solutions, focusing on the manufacture and distribution of
plastic injection moulded, vinyl dip moulded and metal items.

Headquartered in the United Kingdom, Essentra's global network extends to 28
countries worldwide and includes over 3,000 employees, 13 manufacturing
facilities, 24 distribution centres and 33 sales & service centres serving
c.74,000 customers with a rapid supply of low cost but essential products for
a variety of applications in industries such as equipment manufacturing,
automotive, fabrication, electronics, medical and renewable energy.

For further information, please visit www.essentraplc.com
(http://www.essentraplc.com)

 

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