Essentra FY profit falls 26pc on integration woes

LONDON: Essentra Plc, a supplier of speciality plastic and packaging components, said full-year profit fell 26 per cent on flagging sales at its health and personal care packaging unit, due to integration issues from an acquisition completed in 2015. This reiterates the challenges the company has been facing, prompting it to issue profit warnings three times in the past 12 months.
Essentra shares opened 3.9 per cent lower at 405 pence at 0805 GMT on Friday on the London Stock Exchange. The health and personal care packaging unit, which bought the specialist packaging division of the Clondalkin Group, is the company’s biggest business, accounting for about 40 per cent of total revenue. Operating profit at the unit fell 44 per cent. Milton Keynes, Buckinghamshire-based Essentra had indicated on January 23 that sales at the business were more challenging than previously expected. The company had said in January that its new chief executive had initiated a strategic review of the company and that the health and personal care unit would be receiving “specific short-term focus and remedial attention” from him. — Reuters