REG - Essentra plc - Annual General Meeting - Trading Update

EssentraAnnouncement

19/05/2022 07:00

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RNS Number : 0195M  Essentra plc  19 May 2022

ESSENTRA PLC

("Essentra" or "the Company")

A leading global provider of essential components and solutions

 

ANNUAL GENERAL MEETING - TRADING UPDATE

At Essentra plc's ("Essentra" or "the Company") Annual General Meeting ("AGM")
today, Paul Lester, Chairman, will make the following statement.

·    The strategic reviews of Filters and Packaging are progressing in
line with expectations

·    The Group had a strong start to the year, with like-for-like
("LFL")(1) Q1 revenue growth of 16.4%, supported by pricing initiatives and
volume growth

·    Components delivered another strong performance with growth of 23.9%
in Q1, +15.9% on a LFL trading day adjusted basis

·    Packaging achieved LFL Q1 revenue growth of 11.1%, supported by the
continued recovery of healthcare markets

·    Filters delivered LFL Q1 revenue growth of 15.9% benefitting from its
'game changers'

·    The Company is expecting to deliver FY 2022 adjusted operating profit
in line with the Board's expectations

The Group had a strong start to the year with LFL(1) revenue growth of 16.4%
in Q1 2022, compared to the same period in the prior year. April trading
continued to show good momentum and order book trends remain positive across
the Group. The Company expects to deliver FY 2022 adjusted operating profit in
line with the Board's expectations.

Trading update

The Components division had a strong start to the year. Q1 LFL revenue on a
trading day adjusted basis increased by 15.9% when compared to Q1 2021. This
performance continues to build on the positive momentum seen throughout 2021.
Whilst we delivered good growth in April and demand remains positive in our
end markets, growth may moderate as comparatives become tougher. We have a
strong order book and we continue to mitigate cost inflation through pricing
actions.

The Packaging division's growth accelerated to 11.1% in Q1 when compared to Q1
2021. This performance was supported by the continued recovery in healthcare
markets and the positive impact of price increases which is helping offset
cost inflation. This trend continued in April, and we are closely managing
supply chain challenges, which are impacting the availability of raw
materials. The division is progressing its sustainable product offering and
announced two strategic partnerships in the period.

The Filters division has delivered another strong performance in Q1. LFL
revenue increased by 15.9% compared to Q1 2021. April continues to deliver
positive growth and pricing surcharges are being agreed with customers to
mitigate cost inflation. We are focused on developing and launching
proprietary ECO(2) and Tobacco Heated Products and continue to identify and
secure new outsourcing opportunities. The China JV continues to gain momentum
and has increased production volume in line with expectation. We are also
supporting multi-national companies with business continuity plans, as their
plants remain closed in Ukraine.

Outlook

The Group continues to manage supply chain and inflationary pressures and
remains focused on delivering its commercial and strategic priorities. Whilst
growth rates may moderate as comparatives become tougher, the Company expects
to deliver adjusted operating profit in line with the Board's expectations.

 

Notes

1.   Excludes the impact of acquisition and foreign exchange

2.   A higher degradability and non-plastic Filter option. ECO Flute, ECO
Active, ECO Sensation, ECO Cavitec and ECO Cavitec Sensation

 

 

Enquiries

 Essentra plc                                      Tulchan Communications LLP
 Jack Clarke, Chief Financial Officer Designate    Olivia Peters
 Claire Goodman, Group Investor Relations Manager  Martin Robinson
 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. Organised into three global divisions, Essentra
focuses on the light manufacture and distribution of high volume, enabling
components which serve customers in a wide variety of end-markets and
geographies.

Headquartered in the United Kingdom, Essentra's global network extends to 34
countries and includes 8,327 employees, 47 principal manufacturing facilities,
28 sales & distribution operations and two research & development
centres. For further information, please visit www.essentraplc.com.

Essentra Components

Essentra Components is a global market leading manufacturer and distributor of
plastic injection moulded, vinyl dip moulded and metal items. Operating in 25
countries worldwide, 13 manufacturing facilities and 23 sales &
distribution centres serve more than 79,000 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 and
construction. The division also includes the Reid Supply business, which
provides a wide range of branded hardware supplies to a broad base of
industrial customers, largely located in the US Mid-West.

Essentra Packaging

Essentra Packaging is one of only two multicontinental suppliers of a full
secondary packaging range to the health and personal care sectors, with 23
facilities across three geographic regions. The division's innovative products
include cartons, leaflets, self-adhesive labels and printed foils used in
blister packs, which help customers to meet the rapidly-changing requirements
of these end-markets and can also be combined with Essentra's authentication
solutions to help the fight against counterfeiting.

Essentra Filters

Essentra Filters is the only global independent cigarette filter supplier.
Currently headquartered in Singapore, the division has 12 sites across nine
countries, including two innovation centres, providing a flexible
infrastructure strategically positioned to serve the tobacco sector. The
business supplies a wide range of value-adding high-quality innovative
filters, packaging solutions to the roll your own segment and analytical
laboratory services for ingredient measurement to the industry: Essentra's
offering also includes Heat Not Burn and e-cigarette solutions to the rapidly
evolving market for Next Generation Products. The division also includes the
Tear Tapes business, which is globally recognised as the leading manufacturer
and supplier of pressure-sensitive tear tapes, that are largely used in the
tobacco, e-commerce, food and beverage and specialist packaging sectors.

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