Highlights for H1 2017
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· Revenue increased 11% year on year o Increased volumes (+7%) and benefits from exchange rates (+10%), partially offset by price/mix (-6%) o Volume growth particularly strong in China, South East Asia and Russia o As expected volume decline in Latin America, due to impact of H2 2016 reductions related to transition in supply of products · Underlying EBITDA ahead of H1 2016 by 16.7% o Volume growth, delivery of planned cost savings and exchange rate benefits, offset by full costs for new plants started up in 2016 · Underlying operating profit in line with H1 2016, due to higher depreciation on new plants · Improved covenant ratio** of 2.4 times o Due to increased underlying EBITDA and slightly lower net debt |
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.“