LONDON (ShareCast) - (Sharecast News) - Shares in components maker Essentra fell sharply after weaker sales in the final quarter, although the company said it expected annual profits to be in line with expectations despite global economic headwinds.
The company on Friday guided for full-year like-for-like revenue growth of around 6.5%.

"In Q4 2022, as anticipated, the business saw a period of slower global economic growth, with toughening market headwinds. Coupled with the strong comparative for the quarter, LFL trading day adjusted sales declined by 3% compared to Q4 2021," the company said.

Essentra said performance in the fourth quarter had varied by region with its European business delivering growth at "moderated levels", whilst the US business faced greater headwinds, with signs of distributor destocking.

Asia had disrupted trading in China as a result of enforced Covid lockdowns, with that disruption showing signs of abating through the first half 2023 as Beijing dismantled its zero-tolerance policy towards the pandemic.

The company said it was confident it could still pass on price rises to offset cost inflation, and underlying business operations remain strong. It also confirmed plans to return £150m to shareholders in the first quarter.

Reporting by Frank Prenesti for Sharecast.com

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