VICTREX PLC reports Financial Results

2025-12-02 · Stocks · QuoteReporter

The stocks discussed are traded on the London Stock Exchange (LSE). On December 2, 2025, Victrex PLC announced its preliminary results for the fiscal year ending September 30, 2025. The company reported a modest revenue increase of 1%, reaching £292.7 million compared to £291.0 million in the previous year. In constant currency, revenue growth was slightly higher at 3%. Group sales volume saw a significant rise of 12%, totaling 4,164 tonnes, up from 3,731 tonnes in FY 2024, primarily driven by strong performances in the Value Added Resellers (VARs) and Energy & Industrial sectors.

Despite the growth in sales volume, the average selling price (ASP) decreased to £70 per kilogram from £78 per kilogram in FY 2024, largely due to an adverse sales mix and foreign exchange (FX) impacts. Approximately 80% of the year-on-year movement in ASP was attributed to these factors. The Medical segment, which constituted a significant portion of revenue, experienced a decline of 5%, mainly due to weaker sales in the Spine category, although the Non-Spine business grew by 7%.

Gross profit for the year was reported at £132.6 million, a slight decrease of 1% from £134.3 million in FY 2024, resulting in a gross margin of 45.3%, down 90 basis points from the previous year. Underlying profit before tax (PBT) fell by 21% to £46.4 million, impacted by FX fluctuations and a less favorable sales mix. In constant currency, this represented a 10% decline. However, reported PBT increased significantly by 44% to £33.8 million, bolstered by the absence of exceptional items that had affected the previous year’s results.

Earnings per share (EPS) reflected this mixed performance, with underlying EPS declining by 15% to 43.9 pence, while basic EPS surged by 62% to 32.0 pence, benefiting from the improved reported PBT. The company maintained its dividend at 59.56 pence per share, consistent with FY 2024, signaling a commitment to shareholder returns amid the challenging economic landscape.

Looking ahead, Victrex has provided guidance for FY 2026, anticipating low to mid-single-digit percentage growth in sales volumes, with ASP expected to remain stable compared to FY 2025. The gross margin is projected to be flat to slightly improved, ranging between 45.5% and 46.5%. However, the company cautioned that it expects a £2 million to £3 million adverse impact from currency fluctuations. Victrex is currently implementing a Profit Improvement Plan aimed at achieving at least £10 million in annual savings, with full benefits expected by FY 2027.

Overall, while Victrex faced headwinds from currency and sales mix challenges, the company demonstrated resilience through strong volume growth and effective cost management strategies, positioning itself for future growth opportunities.

Original Announcement

Title: Preliminary Results
Date: 2025-12-02
Source: London Stock Exchange