TIDMESNT
RNS Number : 7067X
Essentra plc
07 January 2022
ESSENTRA PLC
A leading global provider of essential components and
solutions
FY 2021 PRE-CLOSE TRADING UPDATE
-- Strategic reviews of Filters and Packaging divisions are
progressing as planned following the Board's decision to become a
pure play Components business
-- As previously guided, both reviews are likely to conclude in Q2 2022 earliest
-- Overall, a strong Q4 performance, revenue increased +12.7% on
prior year on a like-for-like (LFL(1) ) basis and +11.1% vs. Q4
2019
-- Components - another positive performance, LFL trading days
adjusted revenue +c.18.5% in Q4 2021
-- Packaging - an improving trend with the division returning to LFL growth of +1.1% in Q4 2021
-- Filters - a strong performance led by higher volumes of outsourcing, +22.3% in Q4 2021.
-- The Company expects to deliver FY 2021 operating profit in the range of analysts' forecasts 2
Essentra plc ('the Company') today provides a pre-close trading
update for the year ending 31 December 2021.
Strategic Reviews Progressing
The Board has commenced strategic reviews of both the Filters
and Packaging divisions, in line with its strategic goal to become
a pure play Components business. These reviews are currently
running in parallel and progressing as planned. The Board remains
focused on maximising shareholder value and it is anticipated that
both reviews are likely to conclude in Q2 2022 at the earliest.
Trading performance
Overall, the Group has delivered a strong performance for the
year and Q4 2021. Trading is in line with expectations. Thanks to
the maintained strength of performance in Components and Filters,
albeit against tougher comparatives and against a backdrop of
continued global supply chain disruptions, LFL revenue grew 12.7%
in Q4 2021 (+11.1% vs. Q4 2019). Order book trends remain strong
across the Group and as a result, despite the continuous challenges
of the pandemic, the Company is expecting to deliver a total FY
2021 operating profit in the range of analysts' forecasts2.
The Components division had another positive quarter. Q4 2021
LFL trading days adjusted revenue grew by c. 18.5% c ompared to Q4
2020 despite a tougher comparative, and is c.14.7% ahead of trading
days adjusted 2019 Q4 levels. This performance builds upon the
trend of positive momentum delivered throughout the year, as demand
remains strong in our end markets and our commercial initiatives
support growth. We continue to manage global supply chain
disruptions and price increases implemented in H2 have helped
offset input cost inflation.
The Packaging division has continued to show improvement
throughout the year, with Q4 LFL revenue growth of 1.1% (reported
growth 2.1%). In comparison to 2019, Q4 shows a LFL decline of
-1.9% (reported growth vs. Q4 2019 10.4%). Performance has been
supported by the positive impact from the pricing actions taken in
Q3 2021 as well as a pick-up of activity in healthcare markets. The
labour availability and retention situation in the US is
stabilising, and whilst global supply chain challenges are
impacting the availability of raw materials, we maintain our
guidance that the Q4 2021 margin will be slightly below 8%.
The Filters division has delivered a strong performance despite
tougher comparatives, with LFL Q4 2021 revenue up 22.3% and is
20.5% ahead of Q4 2019 levels. T he division continues to benefit
from higher volumes from outsourcing contracts and a strong
performance in Europe. Further progress has been made in the
delivery of its 'game changers' with the China JV continuing to
gain momentum after successful commencement in June. Our range of
proprietary eco and THP products continue to attract increased
interest. The number of projects underway continue to grow
significantly.
Commenting on today's results Paul Forman, Chief Executive, said
:
"We have delivered a strong Q4 performance with all three
businesses delivering growth and having encouraging order books as
we start the year. We continue to monitor COVID-19 challenges and
take actions to offset the impact of global supply chain challenges
which should better position our market leading global businesses
for growth in their respective markets.
The Board is making good progress with the strategic reviews of
both the Filters and Packaging divisions and remains committed to
finding the right outcome for each of our three strong businesses
to thrive independently and to maximise shareholder value in the
relatively short term."
Notes
(1) Excludes the impact of acquisitions, disposals and foreign exchange
(2) Analyst operating profit (adjusted to exclude intangible
amortisation on acquired assets and exceptional operating items)
forecasts for FY21 range from GBP80.7m - 84.3m
Enquiries
Essentra plc Tulchan Communications
Lily Liu, Chief Financial Officer LLP
Lucy Yank, Group Communications Director Olivia Peters
Claire Goodman, Group Investor Relations Martin Robinson
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 7,430 employees, 48 principal
manufacturing facilities, 30 sales & distribution operations
and 3 research & development centres. For further information,
please visit www.essentraplc.com.
Essentra Components
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, 14 manufacturing
facilities and 23 sales & distribution centres serve more than
82,000 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
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
Essentra Filters is the only global independent cigarette filter
supplier. Currently headquartered in Singapore, the division has
thirteen sites across nine countries, including three 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, food and drink and specialist packaging sectors.
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END
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January 07, 2022 02:00 ET (07:00 GMT)
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