Investing.com — Shares of Essentra plc (LON:) plummeted on Tuesday after it revised its guidance for the full year 2024.
The company now projects its adjusted operating profit for the year to be between £40 million and £42 million, down from previous forecasts.
This revision comes in light of weakening market conditions and adverse foreign exchange effects, estimated to impact profits by about £2 million.
Essentra’s revised guidance reflects a more cautious outlook for the remainder of the year.
The Group had initially forecast a modest improvement in volumes during the second half of 2024, based on a gradual recovery in demand across its end-markets.
However, recent developments have tempered these expectations. Specifically, market conditions in Europe, including Turkey, have deteriorated since the half-year results published on 30 July 2024.
This downturn is consistent with broader economic indicators, such as the weak PMI metrics reported across the region.
Additionally, while the Americas region has shown slower recovery than anticipated, the APAC region remains largely in line with previous forecasts.
The combination of these factors, along with the impact of foreign exchange fluctuations, has led the Board to adjust its profit expectations downward.
Essentra shares plunged 19.4% to £134.80 at 5:41 am (0941 GMT), dragging its year-to-date performance down to 5.3%.
