Essentra (ESNT) Trading Update summary

Trading performance

• Q3 2024 group revenue declined by 2.3% at constant currency, with like-for-like revenue down 5.8%, partially offset by a 3.5% contribution from the BMP TAPPI acquisition.

• EMEA experienced softening conditions, Americas saw slower recovery, while APAC achieved modest growth driven by new business wins in China exports.

• Gross margins remained strong across all regions, supported by cost control, procurement actions, and operational efficiencies.

• The business is positioned to benefit from operational gearing when volumes normalize, following 18 months of cost base optimization.

Financial position and outlook

• FY24 adjusted operating profit guidance remains unchanged, expected within the £40.0m to £41.7m range.

• Leverage guidance for FY24 is unchanged, expected within the 0.5x–1.5x target range.

• October trading supports revised internal forecasts, with management focused on operational efficiencies and selective growth investments.

• The business model is considered robust and differentiated, supporting progress toward medium-term targets.

Strategic and operational highlights

• Continued focus on hassle-free customer proposition and right-sizing the cost base.

• Acquisition of BMP TAPPI in October 2023 contributed positively to revenue.

• Management remains confident in the company’s ability to deliver value-enhancing growth initiatives.