UK-based plastic and fibre product supplier Essentra has begun a review of its Packaging division as it aims to become a ‘pure play’ industrial components business.
The company’s packaging unit supplies a full range of secondary packaging for the health and personal care sectors.
It has 23 facilities across three geographic regions and produces cartons, leaflets, self-adhesive labels and printed foils among other solutions.
The review comes a month after Essentra announced a similar evaluation of its Filters unit.
Both these reviews are scheduled to be completed in the second quarter of next year.
Essentra said that its Packaging division was managing the ‘challenging’ conditions in its market.
In the third quarter of this year (FY21), the division posted a 6.1% decline in revenue on a like-for-like basis due to the impact of the Covid-19 pandemic on the recovery of elective surgeries and prescription levels.
Essentra chairman Paul Lester said: “I am pleased with the third-quarter performance overall.
“Components has delivered strong revenue growth, Filters has good momentum and Packaging continues to manage the difficult conditions within its market.
“We continue to focus on organic growth and efficiency initiatives to drive profitability, as well as acquisition opportunities.”
Essentra has forecast its fourth-quarter margin to be slightly below 8%. It also expects to deliver a total FY21 adjusted operating profit of between £80.7m and £84.3m.
The company said it expected its Packaging business to benefit from the recovery in the healthcare systems and unusually strong demand for elective surgeries and prescriptions.
In a separate development, Essentra announced that its chief financial officer Lily Liu will resign from her role at the end of next June.
Essentra chairman Paul Lester said: “On behalf of the Board I would like to thank Lily for her contribution to Essentra over the past three years.
“She has played an important role in helping the team deliver on the group’s strategy and growth objectives.”