Devro’s first-quarter profits fall despite high sales

SAUSAGE skin maker Devro expects profits to make up lost ground later this year after it suffered from lower production yields in the first quarter.

Chairman Steve Hannam said that, although sales had grown since January, profits were below levels seen a year ago.

Good growth in much of Europe and North America was partly offset by a slower start in the UK and Australia.

Hannam said: “We remain confident that the group will meet the board’s expectations for the full year. Remedial action has already been taken and, with the benefits of recent price rises, additional volume from extra capacity and a focus on improving production processes, we do expect stronger performance as the year progresses.”

Moodiesburn-based Devro said its investment scheme in the Czech Republic is proceeding according to plan and will bring more capacity on stream in the second half of the year.