MELKSHAM, England—Avon Rubber P.L.C. has reported a strong set of half-year results with revenue increasing by 22 percent year-on-year to $104.9 million and underlying operating profit 21 percent higher at $14 million.
At constant currency, the respective gains in revenue and underlying operating profit were a more modest 7 percent and 6 percent, noted Avon. Currency factors, it said, increased revenue by $12.5 million and underlying operating profit by $1.7 million.
Underlying EBITDA for the six months to March 31 rose by 25 percent to $21.3 million at the Melksham-based group, which operates two divisions, Protection & Defense, and Dairy.
The group "performed well in improved market conditions and I am delighted to present a good set of results which confirm the progress the group has made over the last six months," recently appointed CEO Paul McDonald said in a statement. "I am confident the business is well positioned to deliver further growth and that there are additional opportunities to build a stronger business for the future."
At Avon's Protection & Defense unit, revenue came in 22 percent higher at $72.3 million and underlying operating profit was $10.3 million. Underlying EBITDA was up 25 percent at $15.6 million. Order intake for the division totaled $86.8 million.
While respirator sales to the U.S. Department of Defense fell slightly, Avon gained another order for 131,000 mask systems under this sole source long-term contract. Sales of protection equipment to foreign military, law enforcement and first responders also increased.
Avon Dairy division benefited from a positive market environment, with revenues up 22 percent to $32.6 million helped by an improvement in milk prices. Underlying operating profit was $5.2 million and underlying EBITDA grew 22 percent to $7.1 million.
Looking at full-year prospects, McDonald said: "With a continued strong U.S. dollar against sterling we anticipate a foreign exchange tailwind in 2017 compared to the last fiscal year. Against the backdrop of anticipated increases in U.S. defense spending and continuing improvement in milk prices the board remains confident of achieving current year expectations."