Essentra PLC
LSE:ESNT
Essentra PLC
Essentra Plc engages in the manufacture of plastic, fibre, foam, and packaging products. The company is headquartered in Milton Keynes, Buckinghamshire and currently employs 8,327 full-time employees. The company went IPO on 2005-06-06. The firm is focused on the light manufacture and distribution of high volume, enabling components, which serve customers in a variety of end-markets and geographies. The firm operates through three segments: Components, Packaging and Filters. Its Components segment is engaged in the manufacturing and distribution of plastic injection molded, vinyl dip molded and metal items. This segment also includes the Reid Supply business, which provides a range of branded hardware supplies to a base of industrial customers, primarily located in the United States Mid-West. Its Packaging segment is a multi-continental supplier of a full secondary packaging range to the health and personal care sectors. Its products include cartons, leaflets, self-adhesive labels and printed foils used in blister packs. Its Filters segment offers cigarette filters and related solutions to the tobacco industry.
Essentra Plc engages in the manufacture of plastic, fibre, foam, and packaging products. The company is headquartered in Milton Keynes, Buckinghamshire and currently employs 8,327 full-time employees. The company went IPO on 2005-06-06. The firm is focused on the light manufacture and distribution of high volume, enabling components, which serve customers in a variety of end-markets and geographies. The firm operates through three segments: Components, Packaging and Filters. Its Components segment is engaged in the manufacturing and distribution of plastic injection molded, vinyl dip molded and metal items. This segment also includes the Reid Supply business, which provides a range of branded hardware supplies to a base of industrial customers, primarily located in the United States Mid-West. Its Packaging segment is a multi-continental supplier of a full secondary packaging range to the health and personal care sectors. Its products include cartons, leaflets, self-adhesive labels and printed foils used in blister packs. Its Filters segment offers cigarette filters and related solutions to the tobacco industry.
Strategic Shift: Essentra announced plans to become a pure play Components business over time, reviewing options for its Filters division first.
Components Growth: Like-for-like Components revenue grew nearly 30% versus Q3 2020, and over 14% compared to Q3 2019, driven by both market recovery and self-help measures.
Packaging Recovery: Packaging revenues declined 6% year-on-year, but North America is seeing signs of recovery, with labor shortages now the main challenge.
Filters Outlook: Filters division continues to perform strongly, with progress in outsourcing, new deals, and a promising China joint venture.
Supply Chain & Pricing: Company is managing supply chain pressures by raising prices, particularly in Components and Packaging, to offset cost inflation.
Outlook: Management sees demand holding up well in most areas, with the only softness in European healthcare, and expects continued strong performance in Q4.
