230 likes | 375 Views
Interim Results 6 September 2007. John Neilson Finance Director. Sales analysis 2007 Sales change vs 2006. Regional sales by destination 2007 Change vs 2006. Income statement 6 months to June 2007. Earnings and Dividend 6 months to June 2007. Balance sheet. Cash flow 6 months to June 2007.
E N D
John Neilson Finance Director
Cash flow6 months to June 2007 *Calculated on operating profits before exceptional items
Peter Page Chief Executive
Key features6 months to June 2007 • Developed markets • UK: slow 6 months • USA: technology changes in beefstick sector • Australia & NZ: mixed sales • Strong volume growth in emerging markets • China: benefit of Cutisin investments • Russia: selling all products through various channels • Manufacturing • Negative impact of product changes • Positive impact of recent investments in Czech Republic • Adverse foreign exchange impact • Currencies hedged to maximum practicable level
Total Collagen Market Devro Sales 2006 Other Fresh sausage marketsNorth America, United Kingdom, Ireland, Australia, New Zealand • Traditional area of strength for the Devro brand • Mature markets, customer consolidation, price pressure • New products aimed at the gut market • Maintain position in market with continuing improvement in customer productivity Total Gut Market
Total Collagen Market Total Gut Market Devro Sales 2006 Other Processed sausage marketsGermany, Eastern Europe, Japan • Cutisin Fine product leading brand outside the Japanese market • Gut sector not easily converted because of traditional consumer and retail attitudes • Devro Plus also to be used to develop new market opportunities
Total Collagen Market Total Gut Market Devro Sales 2006 Other Developing marketsLatin America, Russia, China, other Asia • Increasing market share in 2007, particularly China • Significant gut conversion opportunities based on productivity of Cutisin Fine and Devro Plus
Producers accounting for 50% of market Supplied byDevro Group UK & Ireland 4 4 USA 7 5 China 1 1 Australia 5 5 Collagen marketsCustomer Concentration
Summary • Strong market position • Confident about long term prospects • Analyst and Investor update by mid January 2008