Devro : Half Year 2021 Results Presentation

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HALF YEAR RESULTS

F O R T H E S I X M O N T H S E N D E D 3 0 J U N E 2 0 2 1

2 9 J U L Y 2 0 2 1

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H1 HIGHLIGHTS

• Growth momentum continuing

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3.1% constant currency revenue growth

4.2% edible casings volume growth

1% mature markets

10% emerging markets

• Underlying operating profit of £20.3m up 10% on prior year, benefiting from revenue growth, improving price/mix and ongoing cost savings
• Underlying basic earnings per share up 21% to 8.7p
• Improved free cash flow generation of £9.4m, up 31%
• Covenant net debt of £103.1m, 15% improvement, representing covenant net debt to EBITDA of 1.6x (H1 2020: 1.9x, FY 2020: 1.8x). Further progress expected in H2 2021
• The Board has declared an increased interim dividend of 2.8p, up 4%

SUSTAINABLE GROWTH - BETTER PLANS AND
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PROCESSES SUPPORTING OUR PEOPLE TO DELIVER

P L A N S

3 Year Commercial Plans for all Sales Areas

Go-to-Market plans for key

countries In progress

Clear category and product development plans for Processed, Snacking and Fresh

P R O C E S S

Integrated Business Planning

Sales cycle

Pricing management

Stage Gate product development

P E O P L E

Commercial training program

In progress

Additional resources in sales, technical service and product development ongoing

Completed journey from Regional to Global with Global commercial organisation

Targeted capability upgrades across the organisation

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DELIVERING GROWTH

Total	Emerging	Mature
+4%	+27%	-6%

*Volume: June 19 to June 21		*Volume: June 19 to June 21		*Volume: June 19 to June 21

• Total volume has grown by 4% despite COVID-19 impact with limited recovery but potential upside going forward
• Emerging markets have grown significantly in the last 2 years +27%
• Mature markets stabilised in H2 2020 and returned to modest growth in H1 2021
• Devro continues to be more exposed to mature markets but emerging markets share of total volume has increased from 30% to 37% in the last 2 years on a rolling 12 months basis

* 12 months rolling

STRONG VOLUME GROWTH OF 10% IN EMERGING
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MARKETS
Strong growth in line with 3Cs strategy

• Growth in all markets (except Russia and East)

2 9 % GROUP REVENUE

South East Asia up 28%

• Strong growth in Indonesia and Thailand coupled with new business wins

China up 18%

• Post COVID-19 recovery

Latin America up 8%

• New business wins coupled with annualised benefit from existing customers

Russia and East down 21%

	#1			Russia and East
			China
	#4
Middle East and Africa
South East Asia
#2
#1

Latin America

#2

VOLUME	PRICE/MIX & FX

• FX headwinds impacted our competitiveness	• Volume: +10%	•	Price/mix: -5%
		•	FX: -3%