Page last updated at 11:42 GMT, Tuesday, 4 August 2009 12:42 UK

Sausage company doubles profits

Uncooked sausages
More customers are switching from natural gut casings to collagen ones

Scottish sausage-skin maker Devro has more than doubled its profits in the first half of this year, the company has announced.

The firm said the 120% increase in pre-tax profits was partly due to people eating more meat in the Far East.

Devro, which makes collagen casings has also seen a large increase in demand from Latin American countries.

Volumes were 38% higher than last year, as more customers switched from natural gut to cheaper collagen casings.

In a statement, chairman Steve Hannam said: "The continuing high cost and reduced availability of gut casing is also contributing to the demand for collagen casings."

Reduced costs

He said the second half of the year would be helped by reduced input costs and the start up of the new production lines at its Czech operations.

The company reported a 120% increase in pre-tax profits of £11m.

The headline figure was boosted by a saving made when the company closed a health care scheme for its US employees. Before exceptional items, Devro made a pre-tax profit of £9.2m, up almost 17% from last year.

The Lanarkshire firm employs more than 450 people at its two sites in Moodiesburn and Bellshill. It also has plants in the US, Australia and the Czech Republic and makes 1.6 billion sausage skins each year.

The company said it expected to see more opportunity for growth and productivity throughout the rest of the year.



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