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Essentra Expects LFL Revenue To Drop 10% In Q2, 9% In H1; Sees Revenue Progress In Q3

Essentra plc. (ESNT.L), a supplier of plastic and fibre products, Friday reported that its like-for-like revenue trend improved as the second quarter progressed, expecting 10 percent drop in the quarter and 9 percent decline in the first half. Going ahead for the third quarter, the company projects continued revenue progress on a stable operating base.

In its pre-close trading update for the half year ended June 30, in light of the impact of COVID-19, the company noted that first-quarter trading was largely unaffected by the pandemic, but the impact, as expected, the impact was more profound in the second quarter.

Nonetheless, the performance is in-line with expectations and trading trends are improving.

In the second quarter, like-for-like revenue fell 17% in April, 10% in May and anticipated 1 percent decline in June.

All 71 manufacturing and distribution facilities are operational and broadly back to pre-pandemic levels of service. The company said most significant impact of the pandemic was in Components, with underlying demand in Packaging and Filters robust and marginal year on year growth achieved in June in both divisions.

Looking ahead, the company anticipates some continued disruption to its trading in the coming months and believes that it is still too early to outline the full impact on full year financial performance - hence any guidance remains absent.

The company will report on its half year results on August 28.

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