Victrex Stock Drops on Lower Q3 Sales and Leadership Shake-Up

Victrex (LON: VCT) shares plunged at the open on Tuesday after the high-performance polymer specialist reported a drop in third-quarter revenue and confirmed the retirement of Chief Executive Jakob Sigurdsson.

The company's shares fell as low as 668p at the open. However, they have clawed back some ground, currently down around 8.2% at 722p a share.

Despite an 8% increase in Q3 sales volumes, revenue fell 3% year-on-year to £71.5 million, weighed down by a weaker sales mix and a decline in average selling prices. 

The group cited a “softer than expected performance in Medical,” with its Spine segment particularly affected by destocking, pricing pressures in China, and competition from alternative materials in the US.

Average selling prices dropped 11% to £68/kg in the quarter, driven by adverse product mix and currency effects.

The company said that a continuation of these trends in Q4 would leave second-half profit “broadly similar” to the £23.2 million reported in H1, the company said.

Sigurdsson said the group remained on track to deliver “at least high single-digit volume growth” for the full year, but flagged macroeconomic uncertainty and a £9 million currency headwind.

Meanwhile, in a separate release, Victrex announced that Dr James Routh, currently CEO of AB Dynamics, will take over as Chief Executive, with Jakob Sigurdsson having notified the Board of his intention to retire after nearly eight years as CEO.

A definitive start date has not yet been agreed, but Sigurdsson will remain in place until the transition is complete.

Chair Vivienne Cox welcomed Routh’s appointment, citing his “proven experience in delivering focused growth strategies,” and said he was “the standout candidate” to lead the company into its next phase.