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Devro H1 Profit Down, Volume Rise; Lifts Dividend; Says Confident In FY22 View; Stock Up

Shares of Devro Plc (DVO.L) were gaining around 7 percent in the early morning trading in London after the manufacturer of collagen products for the food industry on Tuesday reported higher revenues and volume in the first half, while profit was lower. The company also lifted its dividend and said its outlook remains unchanged. The company is confident in the full year outturn.

For the first half, profit before tax declined to 15.9 million pounds from last year's 18.4 million pounds. Basic earnings per share were 7.5 pence, lower than 9.3 pence a year ago.

On an uderlying basis, the prior year's profit before tax was 17.7 million pounds or 8.7 pence per share.

Revenue increased 8.3 percent to 129.8 million pounds from 119.9 million pounds last year. Constant currency revenue was up 8.8 percent, primarily driven by growth in mature markets.

Volume of edible collagen casings went up 4.5 percent with volume in mature markets rising 7.6 percent, while Emerging market volume was down 0.9 percent.

Further, the Board has declared an interim dividend of 2.9 pence, up from 2.8 pence last year.

Looking ahead, Rutger Helbing, Chief Executive Officer of Devro, said, "Whilst we remain alert to global supply chain challenges and inflation, the Board's expectations for the full year are unchanged. The Group's robust first half performance, solid order books, pricing action and ongoing momentum gives us confidence in the full year outturn. Current foreign exchange rates could provide upside if they prevail throughout the second half."

In London, Devro shares were trading at 200.50 pence, up 7.10 percent.

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