Essentra Q3 Report 2023

Trading Update

Consistent with the update shared at the HY23 results, Essentra has continued to deliver a resilient performance in Q3, demonstrating the Group’s financial discipline and operational strength, as it continues to make progress towards its medium-term targets.

On a like-for-like (“LFL”) and trading day adjusted basis, revenue declined by -7.1% in Q3 2023, compared to the same period in the prior year, an improvement from the decline experienced in Q2 2023 of -11.9% on a LFL and trading day adjusted basis. Sales on a sequential quarter on quarter basis remain broadly stable as guided, whilst prior year comparatives have started to ease after a strong H1 2022 performance.

Essentra continues to deliver strong operating margins. All regions continue to maintain sales pricing, and see the benefit of pro-active and disciplined cost management actions. Group central costs that were resized in H1 2023, continue to be managed and remain in line with previous guidance.

The acquisition of BMP TAPPI announced on 26 September 2023 remains on track to complete shortly. BMP TAPPI will strengthen the Group’s product portfolio and unlock further cross-selling opportunities, in line with Essentra’s inorganic growth strategy, and will enhance the Group’s manufacturing footprint in Europe.