Devro FY operating profit to be at upper end of forecasts
Meat casings manufacturer Devro said on Monday that full-year underlying operating profit is set to be at the upper end of current analyst expectations following better-than-expected trading at the end of 2020.
In an update for the year to the end of December, the company said trading in the final months of the year was slightly ahead of management's expectations, driven by higher volumes and margins. As a result, underlying operating profit is expected to beat consensus expectations of between £38m and £40.5m.
Devro said it delivered strong cash generation in the final quarter, with net debt at the end of December standing at around £110m.
The company is due to release its full-year results on 2 March.
Peel Hunt said it was encouraging that business is stable given the current restrictions. The broker noted that it is at the bottom end of consensus expectations as it lifted its 2020 pre-tax profit forecast by 9% to £35.5m following the update.