TIDMESNT
RNS Number : 9101Z
Essentra plc
17 January 2024
ESSENTRA PLC
PRE-CLOSE TRADING UPDATE
A resilient Q4 performance, FY23 expectations unchanged
Essentra plc ("Essentra", the "Group", or the "Company"), a
leading global provider of essential components and solutions,
today provides a trading update for the thirteen weeks ended 31
December 2023 ("Q4").
The Group's FY23 expectations remain unchanged. The Group
expects to deliver adjusted operating profit for the full year in
line with previous guidance . The business continues to demonstrate
operational and financial resilience, remaining well positioned to
continue to progress towards its medium-term targets.
Trading update
In Q4, the Group saw a sequential improvement in performance
compared to the previous quarter. Group revenue on a
like-for-like(1) ("LFL") and trading day adjusted basis declined
-3.6% in Q4 2023, compared to the same period in the prior year, an
improvement on the -7.1% decline reported in Q3 2023, as
comparatives continued to ease after a strong H1 2022
performance.
EMEA saw an improvement in new order momentum in Q4, whilst
continuing to experience market softening as previously guided, in
line with changes to the macro-environment. The AMERS region saw
trading stability quarter on quarter, and remains focused on the
improvement in destocking trends within distributor end-market
channels. The APAC business has continued to demonstrate a gradual
recovery.
Through a combination of disciplined and proactive initiatives
taken through 2023, including effective sales pricing offsetting
inflation, Group adjusted operating margins remain strong. Central
corporate costs, that were re-sized in H1 2023, continue to be well
managed, and remain in line with previous guidance of approximately
GBP13m.
The BMP TAPPI acquisition, completed on 26 October 2023 is
performing in line with management expectations, early integration
plans are on track.
Outlook
With a robust and differentiated business model, underpinned by
its breadth of customers, end market categories and geographical
diversification, Essentra is well positioned, and continues to
demonstrate through-cycle financial resilience. The Group's balance
sheet and cash generation remain strong, providing optionality for
investment in organic growth initiatives and earnings enhancing
M&A.
Through operational leverage, acquisition synergies and the
compounding benefit of cost actions taken by management in 2023,
the Group remains confident in delivering progress towards its
medium-term targets.
Commenting on today's announcement, Scott Fawcett, Chief
Executive Officer, said:
"I'm pleased with Essentra's performance in its first full year
as a standalone components business. This year, we have been
operationally successful whilst navigating the macro-economic
backdrop, with the execution of M&A, the expansion of our
footprint and right-sizing of our central cost base. We are on
track to deliver adjusted operating profit in line with previously
shared guidance, and continue to progress towards our medium-term
targets".
Notice of results
Essentra will release its preliminary results for the twelve
months ended 31 December 2023 on 19 March 2024. Further details
regarding the Company's presentation to analysts and investors will
be provided nearer the time.
1. The term "like-for-like" describes the performance of the
continuing business on a comparable basis, adjusting for the impact
of acquisitions, disposals and foreign exchange. 2023 LFL sales
performance is adjusted for the acquisition of the Wixroyd Group
("Wixroyd") on 1 December 2022 and BMP s.r.l ("BMP TAPPI") on 26
October 2023.
Enquiries
Essentra plc FTI Consulting
Jack Clarke, Chief Financial Officer Richard Mountain
Claire Goodman, Investor Relations Ariadna Peretz
Manager FTI_essentra@fticonsulting.com
Emma Reid, Company Secretary
Tel: +44 (0)1908 359100 Tel: +44 (0)20 3727 1340
Notes to Editors
About Essentra plc
Essentra plc is a FTSE 250 company and a leading global provider
of essential components and solutions, focusing on the manufacture
and distribution of plastic injection moulded, vinyl dip moulded
and metal items.
Headquartered in the United Kingdom, Essentra's global network
extends to 28 countries worldwide and includes over 3,000
employees, 13 manufacturing facilities, 24 distribution centres and
33 sales & service centres serving c.74,000 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, medical and renewable
energy.
For further information, please visit www.essentraplc.com
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END
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