Source: Sharecast
The London-listed company has targeted underlying pre-tax profit to be “slightly” improved on the first six months of the year but warned earnings would be flat that if the current sales mix and weak average selling prices continued."
Overall Q3 trading saw continued volume momentum, offset by a softer than expected performance in medical and further adverse sales mix within sustainable solutions,” chief executive Jakob Sigurdsson said in a third quarter trading update.
“Spine remains the most impacted application area within medical, including impacts from industry destocking, the effects from volume based pricing in China and alternative materials in the US Spine market.”
Foreign exchange headwinds were now closer to £9m, at the higher end of guidance. The further strengthening of the pound against the US dollar and euro meant that adverse impact for 2026 was around £3-4m worse than current year.
Victrex said hedging was in place to cover more than 50% of dollar and euro exposure next year and this would increase to around 75% by September 30.
Sigurdsson said the group was well positioned to deliver at least high single digit volume growth for the full year, in line with guidance, although the rest of fiscal 2025 “sees a tougher comparative and we are mindful of ongoing macroeconomic uncertainty”.
Reporting by Frank Prenesti for Sharecast.com