The company has seen strong sales of its sausage skins in the UK, Russia and Japan, with global demand continuing to grow. Releasing its half year results today, the company reported making £17 million since January, an 86 percent increase on last year. Global sales for the firm were up 11 percent to £116.1 million.
Devro's Chief Executive Peter Page said: "We've grown profitable sales in developed and emerging markets and we've made real progress in our manufacturing efficiencies, giving us a better margin on these sales."
Steve Hannam, Chairman of Devro, said: "The global market for collagen casings continues to grow at an estimated 5 percent per annum, driven primarily by economic expansion and increased meat consumption in emerging markets.
"The continuing high cost and reduced availability of gut casing is also increasing the demand for collagen casings through increased substitution."
INCREASED EFFICIENCY
The company has also seen a boost in efficiency following the installation of new high speed lines at its Czech and Australian facilities. This accompanies substantial productivity improvements made during the period, and better savings than forecast from a 2009 investment in its Czech facility, as well as improved manufacturing efficiencies in all other plants.
“The Board expects the good performance to continue for the rest of the year, supported by the additional production capacity recently commissioned in our Czech and Australian facilities,” Hannam said. “Looking further forward, our markets are continuing to provide growth opportunities. The Group is well placed to take advantage of new product development and improvements in operational efficiency.”
In response to the results, Devro has increased its interim dividend by 40.4 percent. The company said it expected its markets to continue to provide opportunities for growth.
Edited by Ellie Duncan
Source: http://www.devro.plc.uk/
Devro's Chief Executive Peter Page said: "We've grown profitable sales in developed and emerging markets and we've made real progress in our manufacturing efficiencies, giving us a better margin on these sales."
Steve Hannam, Chairman of Devro, said: "The global market for collagen casings continues to grow at an estimated 5 percent per annum, driven primarily by economic expansion and increased meat consumption in emerging markets.
"The continuing high cost and reduced availability of gut casing is also increasing the demand for collagen casings through increased substitution."
INCREASED EFFICIENCY
The company has also seen a boost in efficiency following the installation of new high speed lines at its Czech and Australian facilities. This accompanies substantial productivity improvements made during the period, and better savings than forecast from a 2009 investment in its Czech facility, as well as improved manufacturing efficiencies in all other plants.
“The Board expects the good performance to continue for the rest of the year, supported by the additional production capacity recently commissioned in our Czech and Australian facilities,” Hannam said. “Looking further forward, our markets are continuing to provide growth opportunities. The Group is well placed to take advantage of new product development and improvements in operational efficiency.”
In response to the results, Devro has increased its interim dividend by 40.4 percent. The company said it expected its markets to continue to provide opportunities for growth.
Edited by Ellie Duncan
Source: http://www.devro.plc.uk/