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Victrex reports volume growth, maintains positive full-year outlook

Published 04/07/2024, 07:30
Updated 04/07/2024, 07:40
Victrex reports volume growth, maintains positive full-year outlook
VCTX
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Proactive Investors - High-end polymer manufacturer Victrex (LON:VCTX) reported a strong performance in the third quarter with group volume increasing by 20% to 979 tonnes compared to the same period last year.

Revenue in the period rose by 2% year-on-year to £74 million.

Victrex noted improvements across several end markets, particularly within Sustainable Solutions.

The Value Added Resellers (VAR) sector saw significant volume growth, as did the Aerospace, Automotive, Electronics, and Energy & Industrial sectors.

In the Medical segment, Victrex continues to face challenges with customer destocking, which partially offset impacted performance in the quarter.

Victrex's financial position remains robust, with improved cash generation, lower capital expenditure, and progress in inventory reduction.

The net debt position as of 30 June 2024 was £39.6 million, including cash reserves of £22.7 million.

The company reiterated its full-year volume guidance, expecting low to mid single-digit growth.

Chief executive Jakob Sigurdsson said: "With continued momentum in some end markets, we remain focused on our goal of a better second half year.

“However, high inventory levels and industry destocking amongst major medical device customers continue to be challenging for our Medical business.”

Read more on Proactive Investors UK

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