The premium taste of sausages using Devro’s collagen skin wrappers used in the premium ‘Select’ range are responsible for a 8% hike in sales for the half-year to June 2012.
Devro, which makes casings for sausage products ranging from German bratwurst to British breakfast bangers, said it continued to expect volume growth for the rest of the year, driven by collagen skins, which replicate the premium taste of sheep gut.
Chairman of Devro, Steve Hannam, said: “Sales have increased across a wide range of markets and the good momentum from the second half of 2011 has continued into 2012.
“The outlook for the remainder of the year is for continued volume growth particularly of sales of differentiated products such as Select, supported by further manufacturing improvements arising from our capital programme.
“We remain on track to meet the Board’s expectations for the full year.”
Financial highlights quoted in the company’s interim results for the six months ending 30 June 2012 include:
• Revenues of £115.4M (2011: £107.1M)
• Operating profit of £20.7M (2011: £19.5M), despite higher input costs • Profit before tax excluding net finance expense/income on pension of £20.2M (2011: £19.1M)
• Basic earnings per share excluding net finance expense/income on pension of 9.9p (2011:9.2p)
• Interim dividend of 2.65p per share (2011: 2.5p)
• Net debt increased, as expected following the investment programme, to £31.4M (2011: £24.0M)
• Continued strong sales growth in Japan, South East Asia, Eastern Europe and Latin America
• Select sales increase in Europe and Japan and now account for 8.1% of total group sales
• Recent capital expenditure delivering benefits
• Significant ongoing capital programme to deliver further capacity increase in 2013
• New board and senior management appointments