LONDON: Essentra PLC on Tuesday reported financial results for the half year ended June 30, 2025, with performance meeting the company’s expectations despite continued macroeconomic challenges across global markets.
The components and solutions provider posted revenue of £152.4 million, a 1.1% decline on a constant currency basis from £159.7 million in the first half of 2024. Adjusted operating profit fell 19.8% to £16.5 million, while adjusted operating margin narrowed 250 basis points to 10.8%.
Chief Executive Scott Fawcett said the Group’s performance remained resilient in challenging conditions and highlighted regional growth in the Americas and Asia-Pacific.
“We have been particularly encouraged by the resilience and performance in Americas and APAC through the first half of 2025, with both regions returning to year-on-year revenue growth,” said Fawcett.
Year-over-year revenue rose 0.7% in the Americas and 9.5% in APAC, driven by improved pricing and export activity from China. However, Europe, the Middle East and Africa saw a 4.5% decline, although contraction eased in the second quarter.
Cash generation remained strong, with adjusted operating cash flow at £17.4 million and cash conversion reaching 106%. The company maintained an interim dividend of 0.8 pence per share, aligned with its policy for dividend coverage.
Net debt excluding lease liabilities increased slightly to £68.7 million, resulting in leverage of 1.5 times adjusted EBITDA.
Looking ahead, Essentra reiterated its full-year adjusted operating profit guidance. Management expects margin improvement in the second half, supported by operational efficiencies and pricing initiatives.
“These actions, alongside volumes remaining consistent with Q2 levels, will support margin accretion and modest revenue growth,” Fawcett added.
The Group is also evaluating bolt-on acquisition opportunities to advance its strategic growth targets.