Devro dining out on leaner times

Published on Monday 17 November 2008 21:01

DEVRO, the sausage skin maker, yesterday revealed that its sales were continuing to grow despite a turbulent world economy, as the world eats more meat products.

Finance director Peter Williams said trading was being boosted by demand in eastern European and Asia, while rising gut prices were driving business to Devro's synthetic products.

"Demand is holding up very well," he said. "Consumption of meat products worldwide continues to rise and the conversion from natural gut products to collagen for sausages continues."

Chief executive Peter Page told The Scotsman in August that he believed a fall in consumer spending was driving sales of "non-premium sausage products", Devro's main market.

Williams said yesterday that the company was benefiting from currency movements, although gains from a rising US dollar had been partly offset by a falling Australian dollar.

Devro also warned in August that its utility bills could rise by up to 2 million this year. Yesterday it said the final impact was expected to be lower, as energy prices fall.

Devro shares rose 0.5p to 70p yesterday.