Essentra sees FY profit at lower end of expectations

Essentra said on Wednesday that full-year adjusted operating profit was set to be "towards the lower end" of its expectations due to a "softer" trading environment.

In an update for the 13 weeks to 30 September, the company said that on a like-for-like and trading day adjusted basis, revenue fell 7.1% on the same period a year earlier. This is an improvement on the 11.9% decline seen in the second quarter.

Essentra said sales on a sequential quarter-on-quarter basis remain broadly stable, while prior year comparatives have started to ease after a strong first-half performance in 2022.

The EMEA region experienced market softening in Q3, in line with changes to the macroeconomic environment.

In the Americas, meanwhile, Essentra continued to see destocking behaviour in distributor end-market channels. The Asia Pacific business continues to recover at a gradual pace, it said, driven by the market dynamics in China.

"Essentra continues to demonstrate through-cycle resilience, as it has historically, and is well positioned with a robust and differentiated business model, underpinned by its breadth of customers, market categories and geographies, as well as a strong balance sheet," it said.

"Reflecting the softer trading environment, the board expects to deliver adjusted operating profit within its expectations for FY23, but towards the lower end."