Victrex Q3 revenues tick higher but Medical still hit by destocking

Polymer maker Victrex reported volume and revenue growth for the third quarter on Thursday, but cautioned over difficult trading at its medical segment.

In the period from 1 April to 30 June, group volumes rose 20% on the same period a year earlier to 979 tonnes, while revenue was 2% higher at £74m.

Victrex said average selling prices during the quarter reflected sales mix and the continued improvement in VAR (Value Added Resellers), offset by a softer performance from the medical segment.

In the medical division, Victrex said the impact of customer destocking continued into the third quarter, in line with its guidance.

Year to date, group revenue was down 9% at £213.3m. This reflects the softer first half year and lower Medical revenues. Meanwhile, volumes were down 2% at 2,716 tonnes.

Chief executive Jakob Sigurdsson said: "With continued momentum in some end markets, we remain focused on our goal of a better second half year. However, high inventory levels and industry destocking amongst major medical device customers continue to be challenging for our Medical business. At this stage, Medical performance is tracking lower than our expectations for the second half year.

"On a full year basis, our volume guidance is unchanged and we continue to expect low to mid single digit volume growth. At a profit level, destocking in Medical and ongoing lower asset utilisation continue to be headwinds, with currency rates starting to move adversely in the second half. Unless Medical improves above current run-rates, the opportunity to deliver a slightly better PBT performance in H2 2024, versus H2 2023 - in line with our previous guidance - will be challenging. Cost discipline remains strong."