Essentra PLC, a global provider of essential components and solutions, has released its Q3 2023 trading update. The company has demonstrated a resilient performance in Q3, showing financial discipline and operational strength as it progresses towards its medium-term targets. On a like-for-like and trading day adjusted basis, revenue declined by -7.1% in Q3 2023 compared to the same period last year, an improvement from the decline experienced in Q2 2023. Sales on a sequential quarter-on-quarter basis remain stable, while prior year comparatives have started to ease after a strong H1 2022 performance.
The EMEA region experienced market softening in Q3, in line with changes in the macro-economic environment. In AMERS, destocking behavior continues to be observed in distributor end-market channels, while the APAC business is gradually recovering, driven by market dynamics in China. Essentra continues to deliver strong operating margins, maintaining sales pricing and benefiting from proactive and disciplined cost management actions. Group central costs, which were resized in H1 2023, are being managed and remain in line with previous guidance.
The acquisition of BMP TAPPI, announced on 26 September 2023, is on track to complete shortly. This acquisition will strengthen Essentra's product portfolio and unlock cross-selling opportunities, in line with the company's inorganic growth strategy, and enhance its manufacturing footprint in Europe.
Looking ahead, Essentra expects to deliver adjusted operating profit within its expectations for FY23, but towards the lower end. The company remains well positioned with a robust and differentiated business model, supported by its breadth of customers, market categories, geographies, and a strong balance sheet.
Essentra PLC is a FTSE 250 company that manufactures and distributes plastic injection molded, vinyl dip molded, and metal items. It operates in 28 countries worldwide, with 13 manufacturing facilities, 24 distribution centers, and 33 sales and service centers. The company serves approximately 74,000 customers in industries such as equipment manufacturing, automotive, fabrication, electronics, medical, and renewable energy.