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Essentra - £5m reduction in costs

October 2023

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I caught up with CEO Scott Fawcett again on the day of Essentra’s interims. The highlight was a £5m reduction in central costs (£2m more than previously planned) which meant it met expectations for EBIT profit of £23m, up 52% year-on-year (eps: 5.9p). The double-digit volume decreases, offset by 7-8% price rises, leave sales down 5.5% overall. Those savings powered a 5.2% increase in EBIT margin to 13.8%. Fawcett’s plan is to hit 18% medium-term. Macro factors led to tough conditions. EMEA was broadly flat, but the outlook has downside risk due to weakness in Germany. The Americas fell 12.6% and even though de-stocking continues, it could recover quicker than expected with US inflation coming under control. Asia fell 18.3% but wit ...

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Essentra - £5m reduction in costs

October 2023

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