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EX ESSENTRA HY 2021 PRE - CLOSE TRADING UPDATE Released : 07/07/2021 07:00 RNS Number : 3739E Essentra plc 07 July 2021 ESSENTRA PLC HY 2021 PRE - CLOSE TRADING UPDATE Summary • Well positioned to continue the rebound from Covid - 19 ( " the pandemic " ) , focused on delivering organic growth , cost reduction initiatives and accretive M & A • Strong Q2 2021 Group performance , revenue increased 13.6 % on prior year ( 7.4 % growth in H1 ) , on a like - for - like ( LFL ) 1 basis Components continued with its trend of improving growth , with LFL Q2 revenue up by c.38 % ² • Packaging had another tough period in Q2 with a LFL revenue decline of 4.8 % due to underlying market conditions , though there was steady improvement as the period progressed . Strategic initiatives projects delivered to support margin improvement Filters ' strong start to the year continued , with revenue growth of 15.4 % in Q2 Price increases in Components and Packaging in H2 to offset inflationary pressures Current trading and outlook Our four priorities remain ; employee physical and emotional wellbeing , continued high levels of customer support , cash conservation , and building for our future . The trend of positive quarterly momentum has continued with LFL growth in Q2 2021 of 13.6 % ( 7.4 % growth in H1 ) , albeit the prior year comparison is inevitably skewed due to the impact of the pandemic taking its full grip from April last year . Compared to Q2 2019 , Q2 2021 is up by 2.4 % on a LFL basis . Although the pandemic continues to cause some uncertainty in the macro - economic environment , recent order book trends remain positive across the Group . The Components division delivered a strong performance in Q2 2021 , with LFL revenue per working day up c.38 % ( up c.7 % vs. Q2 2019 ) , as end markets continued to improve and our commercial initiatives continued to deliver benefit . Components has delivered this growth despite supply chain challenges , which are beginning to improve as we continue to drive proactive remediation actions . The business is facing some inflationary input cost pressures , which we are looking to offset with price increases in H2 . We continue to invest in our Business Process Redesign ( BPR ) programme and have now gone live with our first operational site in Spain . The recently announced acquisition of Jiangxi Hengzhu Electrical Cabinet Lock Co. , Ltd is on track to complete in Q3 2021. Based on recent order book data we expect continued positive momentum in H2 . The Packaging division saw a Q2 2021 LFL revenue decline of 4.8 % ( reported + 4.9 % ) , as prescriptions and elective surgery volumes continued to be impacted by lockdowns . The prior year comparative was tough as volumes were boosted by enhanced ' over the counter ' trade due to the pandemic . It should be noted though that there was a steady improvement in trade as Q2 progressed . Whilst input costs have increased in H1 , we are now implementing pricing actions to mitigate these effects . Cost reduction initiatives , in particular the recent closure of our Portsmouth ( UK ) and Moorestown ( USA ) sites , continue to support margin improvement . We maintain our target exit rate of delivering an 8-10 % margin , in line with the industry average , by the end of 2021 ( barring any major unforeseen macro - economic events or extended lockdowns ) . Recent order book trends have been improving and we continue to believe the market will return to moderate growth in H2 2021 as global healthcare systems catch up on the significant backlog of prescriptions and elective surgeries . The Filters division continued its strong start to the year , with Q2 2021 revenue growth of 15.4 % ( + 3.3 % vs. Q2 2019 ) . This strong performance has mainly been driven by outsourcing contracts delivering volumes in line with expectations . In terms of progress with the division's other ' game changers ' : The China JV successfully commenced production in June ; and Our range of proprietary eco - products ³ attracting increased interest . The number of projects underway has