Wednesday, February 22, 2012
British sausage-skin maker Devro Plc posted a better than expected rise in full-year profit and said it continued to invest in new facilities, reflecting its optimism on the back of rising meat consumption in emerging markets.
Devro, which makes casings for everything from bratwurst to breakfast bangers, said global collagen consumption grew 10% in 2011.
Shares in the company fell 4%, however, as analysts pointed to a strong rally in the run-up to the results and worries over rising energy and raw materials costs.
The Scotland-based firm hopes to build on growth in Latin America and Russia, as well as the success of its ‘Select’ range, an alternative to sheep gut for producers of premium sausages. The ‘Select’ range accounts for 5% of sales revenue.
The firm declared a final dividend of 5.5p (6.5c) taking the full-year dividend up to 8p (9.5c), 14.3% higher than last year.
Devro will move slowly in China after opening an office in Beijing in 2011.
Devro chief executive Peter Page said: "We’re working to really understand the market rather than chasing high volume sales at low prices just now. We’re well positioned for the right opportunities when they come."
Stripping out the impact of an exceptional gain on 2010 numbers, 2011 pretax profit climbed to £43m (€51m) from £35.2m (€41m) a year earlier. Revenue grew 6.6% to £227.7m (€270m).
— Reuters
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