Sausage casings provider Devro downgraded its profit outlook as sales of its collagen products fell short of expectations in the second of the half of the year. The company said it now expected to report underlying operating profit for the year in the range of £39m to £40m. The weaker outlook was blamed on slightly lower than anticipated second half volumes of 1%, less favourable country mix combined with a smaller than expected foreign-exchange benefit due to the strengthening of sterling. 'After a slower start in the first half of 2019 overall volumes in emerging markets grew 13% in the second half and 7% for the full year,' Devro said. 'Whilst overall volumes in North America grew 7%, growth during fourth quarter was not as strong as expected, specifically impacted by a longer than anticipated Christmas shutdown at a key customer.' 'We anticipate a continuation of the challenging market conditions in Europe (particularly in the first half of 2020), we expect overall group volumes to be ahead of 2019,' it added. At 8:19am: (LON:DVO) Devro PLC share price was -7.7p at 166.7p
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