Victrex PLC on Tuesday reported a fall in full-year profit, noting weak demand in electronics, energy & industrials and value added resellers.
The Lancashire, England-based polymer solutions company with sustainable products aiming for environmental and societal benefits in multiple end-markets said in the financial year ended September 30, pretax profit fell 17% to £72.5 million from £87.7 million a year prior.
Revenue declined 10% to £307.0 million from £341.0 million, as the company cited soft demand in electronics, energy & industrials and value added resellers. Cost of sales decreased by 16% to £136.8 million from £163.7 million, while research & development costs increased 18% to £18.6 million from £15.7 million.
Chief Executive Officer Jakob Sigurdsson said: ‘After one of the most challenging years for the chemical sector and for Victrex, the group delivered in line with guidance. Strong average selling prices, continued innovation, cost discipline and well invested assets demonstrate the strength of our Polymer & Parts strategy and business model. Record revenues in Medical - with a new goal for Medical to double in five years and contribute around one-third of revenues in less than 10 years - and growing opportunities in China, with our new facilities ready to start up, underpin our belief in the core and our mega-programmes.’
Looking ahead, Victrex’s said it was expecting ‘good’ progress in revenue and pretax profit for financial 2024, depending on an improving macroeconomic outlook. ‘Volumes have the potential for double-digit growth although, at this early stage, we have yet to see signs of a macro recovery, with a slow start to our typically seasonally weak Q1. Consequently, growth is expected to be second half weighted, which is consistent with some end-market indicators pointing to improvement during 2024,’ CEO Sigurdsson said.
Victrex declared a final unchanged dividend of 46.14p, bringing the total to an unchanged 59.56p.
Victrex shares fell 5.0% to 1,376.20 pence each on Tuesday morning in London.
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