MELKSHAM, England—Avon Rubber continues to be buoyed by sales of respiratory protection masks but is experiencing a slowdown in the dairy sector, the group said on Jan. 26.
Dairy market conditions remained soft in the first quarter of the financial year, Avon said in a review of the three months to Dec. 31. According to Avon, falling prices for milk have impacted general market conditions for dairy farmers, particularly in Europe.
“This typically cyclical market dynamic has, as expected, reduced demand for our consumable products as farmers extend the life through over using product,” the rubber-based systems maker said.
In protection and defense, Avon said is remained focused on fulfilling deliveries of its JSGPM M50 mask system to the U.S. defense department under a 10-year sole-source contract.
The Melksham-based group is also hopeful of extending its position in the protection and defense market.
“We continue to see a number of higher margin export opportunities although, as always, the timing of order receipt remains unpredictable. We are currently planning for one of these to be received and fulfilled in the first half of this financial year,” Avon said.
The capital nature of the InterPuls product makes the replacement cycle longer. The take up by farms of the innovative Cluster Exchange service remains at encouraging levels in both North America and Europe.
“I am delighted to have joined Avon at this exciting time in its development and see good opportunities for growth across both Protection & Defence and Dairy,” recently appointed CEO Rob Rennie said.
Avon will release its interim results for the six months ending March 31 on May 4.