Sausage casings manufacturer Devro has reported an 11% rise in sales during the first half of the year. In its newly published results covering the six months to 30 June 2017, the firm said it had experienced 7% volume sales growth and had benefited from favourable exchange rates, although price rises had partially offset this benefit.
Devro said despite sales rising, underlying profit for the half was in line with the same period last year, due to higher depreciation on new plants.
Peter Page, Chief Executive of Devro, commented: “Devro has made good progress with its principal objectives of growing revenue, volumes and market share in a range of markets, whilst reducing unit costs in operations. The Devro 100 programme to accelerate achievement of these objectives has progressed well during the first half of 2017. New products will be introduced during H2 as planned.
“The Board’s expectations for the full year remain unchanged and the business continues to generate strong cash flow from the underlying operations, which will enable net debt covenant ratios to be returned to historic levels over time.”