Aerosols manufacturer forced to issue profit warning

McBride

A manufacturer of personal care, skincare and toiletry products this morning issued a warning that its profits will drop between 10% and 15% due to pressures on its cost base. 

McBride, which has manufacturing sites in Hull, Middleton, Manchester and Barrow this morning issued a trading update ahead of the publication of its interim results for the six months ended 31 December 2018.

The Manchester based firm has already announced plans to close it Hull site, with the loss of 117 jobs in spring this year, and last year sold its liquids division – which had operations in Bradford – to reduce its costs.

McBride said: “As announced in our trading update of 10 January, the Group achieved good sales growth in the first half period, with continuing underlying revenues, excluding the benefit of first quarter revenues from Danlind, up 6.0% on the prior year.

“However, the Group continues to see pressure on its cost base. We continue to expect the overall raw material pricing outlook to show improvements in the second half, but not to the extent anticipated in early January. 

“In addition, distribution costs continue to rise beyond our previous estimates due to market rates and efficiency challenges driven by logistics capacity shortfalls and internal service gaps. 

“Accordingly, although the group continues to anticipate further good sales growth in the second half year, the Board now expects full year adjusted profits before tax to be approximately 10% to 15% lower than the prior financial year.”

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