Devro Shares Plunge 13% on Sausage Skin Maker's Profit Warning

Shares in Devro plunged in early trading after the sausage skin maker warned the markets that its 2014 profits would be lower than expected.

The Devro stock price tanked by over 13% to 204.06p as the maker of edible collagen casings for bratwurst, salami and chorizo, revealed that prices and volumes will be flat following a raft of issues.

Devro blamed the European Union's pork meat import ban in Russia and the impact of prior year price increases in Europe for the company's stagnant financial outlook.

"Devro's sales were strong in certain key markets such as Germany, Japan and China and the USA, but in some other markets were weaker. In total, volumes were behind last year for the period," said the group in a statement.

"Sales were affected by a variety of factors such as currency restrictions and devaluations in Latin America, European retail markets, the EU pork meat import ban in Russia and the impact of prior year price increases in Europe."