By Elena Vardon
Essentra, the supplier of plastic and fiber products, experienced a drop in shares as the company provided an update on its financial performance for 2023. The company anticipates that its adjusted operating profit for the year will be at the lower end of expectations, while revenue is expected to decline due to the prevailing softer trading environment.
At 07:15 GMT, shares in Essentra were down by 15.6 pence, representing an 11% decrease, settling at 132 pence.
Although specific figures were not disclosed by the company, it reported an adjusted operating profit of £25 million ($30.4 million) for the previous year, 2022.
During the third quarter, Essentra witnessed a 7.1% decline in revenue on a like-for-like and trading day adjusted basis. However, this indicated an improvement from the second quarter, which experienced a more substantial decline of 11.9%.
Essentra faced market softening in its EMEA region, while dealing with continued destocking in distributor end-market channels in the Americas. Additionally, market dynamics in China are gradually leading to the recovery of its APAC business.