Annual General Meeting - Trading Update
("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 LFL1 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.
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 ECO2 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.
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.
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
Tulchan Communications LLP
Jack Clarke, Chief Financial Officer Designate
Claire Goodman, Group Investor Relations Manager
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 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 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 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.