Overseas demand offsets weak UK at Devro

Devro, which makes manufactured casings such as sausage skins for the food industry, said sales growth continued in the year to date as demand from Eastern Europe, Russia, Japan, SE Asia and Latin America offset slower demand from the UK.

Sales of its premium Select range continue to increase in Japan and Europe and represent a growing proportion of the group's edible collagen sales, it said.

"Manufacturing performance was slightly below expectations early in the year, but recent performance is much improved. The newly installed lines in Scotland are in full production and product development work continues on the new line in the US", the group explained in a company statement ahead of its AGM.

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Devro added its financial position continues to be strong and it remains confident it will meet company expectations for the full year.

Capital investment in additional capacity in the Czech Republic is proceeding as planned.

Chief executive Peter Page commented, "The continued growth in volume and value of sales, across a wide variety of markets, is most encouraging and reflects well on our strategy for long-term growth."

CJ