Devro has reported 1H results in line with our expectations. Revenues were £119.2m (-1%) and PBT £14.9m, +4%. EPS was 7.0p and the interim dividend 2.7p (unchanged). The group had stated early in the year that it anticipated its growth to be 2H weighted and this is reflected in the slightly reduced 1H19 sales number. Edible collagen casing sales were flat (volume and price negative, but FX positive), but sales of other products (collagen gel) were lower. Regionally, EMEA and Americas reported declines in volume, but Asia was ahead with strong growth in China (+19%). EBIT also declined (due to lower volumes and price) with inflation in energy/labour costs offset by Devro 100/operating expense savings. The HoH improvement in PBT was due to lower interest costs reflecting the restructuring of RMB borrowing and a debt refinance last year. Net debt at the half-year increased marginally from the FY18 level, but there is typically a 1H outflow. By the full year, we expect to see progress in reducing leverage (to 2.0x), with this trend continuing into FY20E. We make no changes to forecasts, although we do make some minor adjustments to our profit bridge (see full report). The group now expects to deliver higher cost savings (£7m vs £6m before), but we also anticipate a negative price/mix for the FY (due to region and product mix). The latest FX rates might provide some tailwinds if maintained, but we have only included a very modest £0.5m, as rates are likely to be volatile. We continue to assume around 2% volume growth with easing comps, Fine Ultra and commercial projects assisting the stronger 2H19E.