Devro revenue up 6.6% to £257m

Glasgow-based sausage skin and collagen products firm Devro plc said statutory revenue rose 6.6% to £256.9 million in 2017 and statutory profit before tax was £21.6 million, up from £6.2 million in the prior year.

Departing Devro CEO Peter Page said: “Our priorities at the start of 2017 included sales growth to regain market share and cost reduction in operations.

“We made strong progress on both objectives, with 8% growth in sales volumes of edible collagen casings and a £7 million reduction in the manufacturing cost base, supporting a significant reduction in net debt.

“Over the past 10 years Devro has successfully moved from operating as a series of regional subsidiaries to an efficiently managed single global organisation.

“Revenue from edible collagen has doubled, due to a combination of pricing and volume growth in an increasing variety of markets and applications.

“Numerous excellent and dedicated colleagues have contributed to the development of the business in many ways, for which I am sincerely grateful.

“Growth in demand will continue as the global population increases, consumer spending progresses and tastes become more varied. The business is well positioned for the future.”

New Devro CEO Rutger Helbing said: “Our strategy is unchanged. In 2018, we will continue to focus on maintaining the momentum of the Devro 100 programme to deliver revenue growth and further cost savings across our global operations.

“The total forecast benefits, associated exceptional costs and capital expenditure over the three year period remain unchanged, although given the accelerated cost savings achieved in 2017, the phasing will differ slightly from our original expectations.

“We expect further volume growth in 2018, supported by the introduction of the new Fine Ultra product platform, and continued manufacturing efficiency improvements, in particular at our US plant.

“We will continue to reduce net debt, building on the good progress made in 2017.

“Whilst mindful of ongoing pressures from input cost inflation and exchange rate volatility, at this early stage of the year the board believes that Devro is well placed to make good progress in 2018.”