Sausages skinned by pork prices
Wednesday 05 March 2014
Waning appetite for bangers and mash in the UK has produced a 4.5 per cent fall in annual profits at the sausage-skin maker Devro.
Soaring pork prices have led to a decline in UK sales of sausages, chorizo and pepperoni in the UK, with a 5 per cent drop in demand in the past two years.
Sales in Europe, Australia and Russia have not been much better and, although Devro met City forecasts with a pre-tax profit of £37.5m for 2013, its weak outlook for 2014 prompted a 9 per cent fall in the shares to 277p.
The chief executive, Peter Page, said the outlook "for important markets, such as the UK, Russia, the US and Australasia, is less clear".
He added that the group will consider cuts at factories where the cost of production is highest, to reduce expenses this year.
Sales in the hot-dog nation of the US were up just 2 per cent. But there was better demand in emerging markets such as China, South-east Asia and Latin America, where total sales volumes of sausage casings jumped by 10 per cent.
Devro said it will invest £50m in a new manufacturing plant in Nantong, near Shanghai, to meet Chinese demand.
- 1 Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
- 2 HeForShe campaign: Iceland to follow up Emma Watson speech with UN women's rights conference – for men only
- 3 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
- 4 Teenagers irritable because early school hours mess with their biological clocks
- 5 Now we know whose fault it is if you end up being murdered in Thailand
Isis could become 'world’s first truly terrorist state' and bomb UK with nuclear and chemical weapons, Theresa May warns
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Car tax disc changes: Five facts you never knew about your (almost obsolete) tax disc
Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
Isis an hour away from Baghdad - with no sign of Iraq army being able to make a successful counter-attack
Isis, we are told, is a 'clear and dangerous threat to our way of life'. I’m sorry, but I just don’t buy it
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Mark Reckless becomes second Tory MP to defect to Ukip in a month
Should gay sex be illegal? 16% of Britons think so
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...