— By Plasteurope.com staff — 

High-performance-polymer specialist Victrex (Thornton-Cleveleys, UK; www.victrex.com) experienced a mixed financial year in 2023/24. While sales volumes of polyetheretherketone (PEEK) and polyaryletherketones (PAEK) rose by 3.7% to 3,731 t, turnover declined by 5.2% to GBP 291 mn (equivalent to EUR 351 mn). Earnings faced a sharper downturn, with pre-tax profit dropping 68% to GBP 23.4 mn. This steep decline was partly driven by negative special effects, which surged to GBP 35.7 mn – significantly higher than in the previous year. The net result fell by 72% to GBP 17.2 mn.

The Medical division, which produces implants for spinal stabilisation, osteosynthesis plates, and dental discs, experienced a 19% decline in sales, dropping to GBP 53 mn. This decrease was primarily due to customers reducing their inventories, particularly during the first half of the financial year, leading to significantly lower purchase volumes. On a brighter note, demand picked up somewhat in the second half, with volume call-offs showing modest improvement.

Related: Victrex reports record revenue and volume despite cost headwinds

The much larger Sustainable Solutions business unit, which produces polymers for various industries, also experienced a decline in sales. Despite the increased sales volume (3,731 t), revenue here fell by 1.6% to GBP 238 mn. Business development varied depending on the end market. Sales volumes to customers in the transportation sector rose by 7.6% to 1,022 t (Automotive up 5%, Aerospace up 15%). Meanwhile, customers from the Energy & Industry sector ordered 602 t, 4.5% less PEEK and PAEK than in the previous year. Order volumes from customers in the electronics segment fell by as much as 12% to 454 t, while sales to resellers rose by 14% to 1,488 t. From a regional perspective, sales volumes in Europe increased by 8.4% to 2,062 t and in Asia by 1.1% to 1,057 t. In contrast, sales in North America fell by 5.8% to 612 t.

At the end of 2024, Victrex commissioned a new plant in China, which is set to ramp up production further in the course of 2025. CFO Ian Melling described the start to the new financial year as “robust”. He now wants to get his company back on track for growth – with a “rigorous focus on cost discipline”. The polyetheretherketone specialist sees growth potential in five areas: lightweight solutions for aerospace, tubes for the energy industry, the use of PEEK in batteries for electric cars, as well as knee implants and plates for bone fractures.

Victrex CEO Jakob Sigurdsson said he plans to increase sales in these five “mega sectors”, which fell by 9.2% to GBP 10.2 mn in the last financial year, to more than GBP 25 mn by the end of 2025. For the company as a whole, he is aiming for sales growth of 5% to 7% in the medium term.