Avon Technologies (AVON) Trading Update summary

Trading performance and revenue growth

• Strong Q2 momentum with revenue growth at Team Wendy from ramped-up ACH Gen II helmet deliveries to the US DOD and increased sales in Avon Protection's FM54 respirators and underwater rebreathers.

• Financial results for H1 FY2025 expected to show significant growth over the prior year, driven by robust demand.

• Additional demand, including new NATO and European Navy orders, will result in FY2025 revenue growth exceeding 10%, up from previous mid-single digit guidance.

New contracts and orders

• Two new European NATO orders secured for FM50 and C50 respirators for the Armed Forces of Ukraine, with deliveries in 2025 and some into FY2026.

• Framework contract signed with two European Navies for MCM100 Multi-Role Rebreather systems, accessories, and support under a 12-year program.

Profit margins and operational updates

• Revenue growth, product mix, and continuous improvement are supporting strong operating profit margins in Avon Protection.

• Team Wendy's H1 margins impacted by production ramp-up and California factory closure, but expected to exit FY2025 with stronger margins.

• Group adjusted operating profit margin for FY2025 now expected above 12%, up from previous guidance of around 11.5%.