REG - Essentra plc - Q3 2023 Trading Update

EssentraAnnouncement

25/10/2023 07:00

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RNS Number : 1766R  Essentra plc  25 October 2023

ESSENTRA PLC

("Essentra", the "Group, or the "Company")

RESILIENT Q3 PERFORMANCE

 

Essentra plc, a leading global provider of essential components and solutions,
today provides a third quarter trading update for the thirteen weeks ended 30
September 2023 ("Q3").

 

Trading Update

 

Consistent with the update shared at the HY23 results, Essentra has continued
to deliver a resilient performance in Q3, demonstrating the Group's financial
discipline and operational strength, as it continues to make progress towards
its medium-term targets.

On a like-for-like(1) ("LFL") and trading day adjusted basis, revenue declined
by -7.1% in Q3 2023, compared to the same period in the prior year, an
improvement from the decline experienced in Q2 2023 of -11.9% on a LFL and
trading day adjusted basis. Sales on a sequential quarter on quarter basis
remain broadly stable as guided, whilst prior year comparatives have started
to ease after a strong H1 2022 performance.

EMEA performance in the third quarter has experienced market softening, in
line with changes to the macro-economic environment. In AMERS, destocking
behaviour continues to be observed in distributor end-market channels, whilst
the APAC business continues to recover at a gradual pace, driven by the market
dynamics in China.

Essentra continues to deliver strong operating margins. All regions continue
to maintain sales pricing, and see the benefit of pro-active and disciplined
cost management actions. Group central costs that were re-sized in H1 2023,
continue to be managed and remain in line with previous guidance.

The acquisition of BMP TAPPI announced on 26 September 2023 remains on track
to complete shortly. BMP TAPPI will strengthen the Group's product portfolio
and unlock further cross-selling opportunities, in line with Essentra's
inorganic growth strategy, and will enhance the Group's manufacturing
footprint in Europe.

Outlook

Essentra continues to demonstrate through-cycle resilience, as it has
historically, and is well positioned with a robust and differentiated business
model, underpinned by its breadth of customers, market categories and
geographies, as well as a strong balance sheet.

Reflecting the softer trading environment, the Board expects to deliver
adjusted operating profit within its expectations for FY23, but towards the
lower end.

( )

(1.   The term "like-for-like" describes the performance of the continuing
business on a comparable basis, adjusting for the impact of acquisitions,
disposals and foreign exchange. 2023 LFL sales performance is adjusted for the
acquisition of the Wixroyd Group ("Wixroyd") on 1 December 2022.)

 

 

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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