UPDATE 1-Sausage-skin maker Devro warns on 2014 profit, shares sink

lunes 28 de abril de 2014 05:03 GYT
 

* Volumes for year to date lower than a year earlier

* Expects 2014 profit, revenue to be lower

* Low-cost manufacturing to reduce cost by 4 mln stg

* Shares fall as much 13.5 pct in early trade (Adds detail, analysts comments; updates share move)

April 28 (Reuters) - Sausage-skin maker Devro Plc warned that 2014 profit would be more than 20 percent below last year's due to lower volumes and costs related to investments in low-cost manufacturing technology.

Shares in the company fell as much as 13.5 percent to a near four-year low of 205 pence, making the stock one of the top percentage losers on the London Stock Exchange on Monday.

The maker of edible collagen casings for bratwurst, salami and chorizo, said it expected revenue to be 13 million pounds lower due to the impact of a strong pound. Profit is expected to be 8 million pounds lower than a year earlier.

The company, which earns only about 10 percent of its revenue in sterling, said sales were hurt by currency devaluation in Latin America, lower retail demand in Europe, the EU pork meat import ban in Russia and the impact of prior year price increases in Europe.

Devro reported a pretax profit of 37.5 million pounds on revenue of 242.7 million pounds for the year ended Dec. 31.   Continuación...