Sausage skin make Devro said it was seeing signs of improvement in demand, with volumes picking up in China, Japan and Germany, and maintained its full-year outlook.
Shares in the company, which is based in Moodiesburn, near Glasgow, rose more than 7% in early trading on Tuesday.
“It’s obviously be taken as a positive today that trading is in line with expectations given that they had a profit warning earlier in the year,”said analyst Charles Hall of Peel Hunt.
Devro, which makes edible collagen casings for sausages, had warned in April that 2014 profit would be more than 20% below last year’s due to lower volumes and costs related to investments in manufacturing technology.
Analysts on average expect Devro’s full-year pre-tax profit at £27.8million , on revenue of £230.4million.
Devro said in July that it planned to cut 130 jobs in Scotland and invest about £90million in new plants in the US and China to take advantage of rising demand for its products in those countries.
The second phase of restructuring in Scotland is expected to conclude at the end of the first quarter of 2015, the sausage maker said.
The group’s capacity is now coming more in line with demand and inventories are reducing, analyst Nicola Mallard of Investec Securities said in a note.