Sausage casing manufacturer Devro has sold its German division to Finnish firm Visko Teepak.
Devro said yesterday (2 August) that it expects to receive EUR1.9m (US$2.7m) for the division upon completion of the deal, which the company expects to be in the third quarter of the year.
The announcements came as the company reported a 23% rise in net income to reach GBP15.6m (US$25.6m) for the first half of 2011.
Revenue from continuing operations increased by 2.4% to reach GBP107.1m, while operating profit from continuing operations climbed 11.6% to GBP19.5m.
The company highlighted “strong” sales growth in south-east Asia, Eastern Europe and Russia, a favourable shift to higher margin sales, and its new Select range “gaining momentum” in Europe and Japan.
Chairman Steven Hannam said: “The continuing business remains on track to deliver the Board’s expectations for the full year. Our investment plan is expected to lead to further improvements in operational efficiency and will provide extra capacity for the anticipated growth in demand in future years as gut conversion opportunities and overall levels of meat consumption continue to increase.”