Devro Posts Higher H1 Profit, Lifts Dividend; Backs FY21 View; Stock Up

Shares of Devro plc (DVO.L) were gaining around 4 percent in London trading after the manufacturer of collagen products for the food industry on Thursday reported higher profit in its first quarter, while sales were nearly flat. Further, the company declared a modestly higher dividend, and maintained fiscal 2021 forecast.

For the first half, profit before tax was 18.4 million pounds, higher than 13.5 million pounds last year. Basic earnings per share were 9.3 pence, up from 6.6 pence a year ago.

Underlying profit before tax was 17.7 million pounds, compared to 14.8 million pounds a year ago. Underlying basic earnings per share were 8.7 pence, compared to 7.2 pence in the prior year.

Revenue was 119.9 million pounds, higher than 119 million pounds last year. Group constant currency revenue went up 3.1 percent on the prior year primarily driven by market share gains and improving pricing discipline.

Further, the Board has declared a modestly increased interim dividend of 2.8 pence, citing the financial position, trading performance and outlook. The dividend is increased for the first time in four years, the company noted.

Looking ahead, Rutger Helbing, Chief Executive Officer, said, ".. we enter the second half with good momentum across the business, and confidence in our future prospects. In the shorter term, for the second half we expect the strong underlying performance to continue, however reflecting the uncertainties relating to COVID-19 pandemic and foreign exchange headwinds, the Board's full year expectations are unchanged."

In London, Devro shares were trading at 223.50 pence, up 3.71 percent.

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