LONDON (dpa-AFX) - Devro plc (DVO.L) reported that its profit attributable to owners of the parent for the year ended 31 December 2018 decreased to 12.5 million pounds or 7.4 pence per share from 15.6 million pounds or 9.3 pence per share last year.
Profit before tax was 17.5 million pounds down from 21.6 million pounds in the previous year.
Operating profit decreased to 26.9 million pounds from 33.0 million pounds, impacted primarily by non-recurring items related to the 2018 Board changes of and higher exceptional items relating to the Devro 100 programme and restructuring as part of the alignment of the operating cost base to the new global model.
Revenue declined to 253.4 million pounds from the prior year's 256.9 million pounds, primarily due to foreign exchange headwinds. Excluding the effects of exchange rate movements, revenue of edible collagen casings grew by 1.5%, partially offset by reduced revenue from other products.
The Board is proposing an increased final dividend of 6.3 pence per share (2017: 6.1 pence per share) bringing the total for the year to 9.0 pence per share (2017: 8.8 pence per share). Subject to shareholder approval at the Annual General Meeting in April, the dividend will be paid on 10 May 2019, to those shareholders on the register at 29 March 2019.
Looking ahead, the company expects to grow revenue (weighted towards the second half) supported by an overall growing market and the continued rollout of the Fine Ultra product across a number of markets; to leverage leading position in the fast growing protein sticks market; and to continue to convert customers from gut to collagen. We will also focus on delivering margin expansion and generating cash to reduce net debt.
Despite ongoing pressures from input cost inflation, principally salary and utility costs and exchange rate volatility, at this early stage of the year the Board believes that Devro is well placed to make good progress in 2019.
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