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Sausage-skin maker Devro announces investment plan after 2016 volumes fall
March 6, 2017 / 8:07 AM / in 7 months

Sausage-skin maker Devro announces investment plan after 2016 volumes fall

March 6 (Reuters) - British sausage-skin maker Devro Plc on Monday announced an investment programme aimed at increasing sales and manufacturing efficiency after reporting a 6.6 percent fall in 2016 sales volumes.

The maker of edible collagen casings for bratwurst, salami and chorizo said it would invest 7-8 million pounds ($8.6 million to $9.82 million) and expected exceptional costs of the programme to be 10-12 million pounds.

It expects annual benefits from the programme of 13-16 million pounds by 2019, Devro said.

Devro reported a 14 percent rise in 2016 underlying operating profit to 38.1 million pounds, helped by favourable currency movement and lower input costs. Revenue rose 4.7 percent to 241.1 million pounds.

However, Devro said full-year sales volumes fell 6.6 percent.

Devro shares were down 3.2 percent in early trade.

$1 = 0.8149 pounds Reporting by Rahul B in Bengaluru; editing by Jason Neely

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