Devro makes progress as it brushes off cost inflation

Devro, the Scottish sausage-skin maker, has said it remains well placed to make “good progress” in 2018, despite rising raw material costs and exchange rate volatility.

In a brief update to coincide with its annual general meeting, the firm said trading in the year to date had been in line with the board’s expectations.

It noted that its “Devro 100” turnaround programme was continuing to progress well, with actions on track to deliver the targeted cost savings for the year.

Devro told investors: “As part of the phased plan to achieve the targeted levels of productivity and output efficiencies at our US plant, good progress was made during the period.

“Our China plant continues to perform well. As previously indicated our focus now is on improving the pricing for the products from this plant, and progress was made during the period.”

In February, former Devro boss Peter Page signed off his decade-long reign at the group with a return to volume growth.