Essentra FY adjusted operating profits seen in line with market expectations

24th Oct 2024 09:51

(Sharecast News) - Essential components manufacturer Essentra said on Thursday that FY24 adjusted operating profits would be in line with market expectations.

Essentra said group revenue fell by 2.3% at constant currency during Q3, with like-for-like revenues down 5.8%, reflective of the weak manufacturing PMI metrics, offset by positive contributions from the recently acquired BMP.

The FTSE 250-listed group said gross margins across all three regions "remain strong", supported by good levels of cost control, procurement actions and operational efficiencies, and also stated its financial position was "robust".

Essentra expects FY24 adjusted operating profit to be in line with current market expectations, with trading in October supporting revised internal forecasts.

"The underlying Essentra business model remains fundamentally strong, operating in a highly fragmented market combining the breadth and depth of its product offering, end-market capabilities and geographic footprint. Management continues to be confident that Essentra's robust and differentiated business model will support further progress towards its medium-term targets," said Essentra.

As of 0950 BST, Essentra shares were up 0.96% at 152.44p.

Reporting by Iain Gilbert at Sharecast.com