Essentra Half-Year Report 2023

Financial and operational resilience

• H1 2023 performance in line with expectations
• Revenue decline of 5.5% to £166.3m (H1 20222: £175.9m)
• Adjusted operating profit increase to £23.0m (H1 20222: £15.1m)
• Pro-active and disciplined management of costs
• Strong pricing maintained, offsetting inflation
• Wixroyd integration on track, unlocking new cross-sell opportunities across Europe
• Central corporate costs resized as Essentra transitions to a pure-play business. Remain on track to deliver the previously guided run rate of c.£13m

Revenue in H1 2023 reduced by 5.5% to £166.3m (7.1% decline at constant currency), and 10.4% LFL decline excluding the acquisition of Wixroyd, completed in December 2022. H1 2022 was particularly strong due to significant end-market recovery and easing supply chains.

Essentra demonstrated continued financial resilience in the first half of 2023, making progress against our medium-term targets delivering £23.0m adjusted operating profit and 13.8% adjusted operating profit margin. Pricing actions at the start of 2023 combined with disciplined cost management initiatives have supported margin performance partly offsetting sales volume decline in the period, and will continue to benefit the business in the second half of the year.