Sharp profit lift at McBride
SHAMPOO to mouthwash maker McBride has reported a return to organic growth and a sharp uplift in profits.
The business, which makes a range of toiletries and household products for retailers such as Superdrug and Marks & Spencer, said revenue had increased across all three divisions in the year to June 30.
McBride experienced “significant” movements in raw material costs which it said were offset by increased selling prices, procurement improvements and operational efficiencies.
The business cut around 60 of its 600-strong workforce at its headquarters in Manchester and closed a Warrington facility with the loss of 100 jobs. It has now transferred production from Warrington and Coventry to a new site in St Helens. Further cuts to the group’s operations in continental Europe took redundancy charges to £7.1m.
During the period sales rose 13% to £792.4m which the group said reflected 4% of organic growth and 9% from currency translation. Pre-tax profit rose 41% to £22.2m.
Chief executive Miles Roberts said: “McBride has delivered growth in sales and profits in the past year and Private Label has grown share in all our markets. Our Western Continental Europe business has performed particularly well with good growth in France and Italy.
“We have made a good start to the new financial year, continuing the trend in the second half of last year. Our markets remain highly competitive but McBride’s Private Label products continue to be relevant not only in the current environment but also in the longer term. We have strengthened the business further in the last twelve months and expect to consolidate these improvements in the coming year.”
The group said it had strong cash flow with cash generated from operations, before exceptional items, up 25% to £61.8m. Year end debt was reduced by £20.9m to £82.4m. The board proposed a final dividend of 4.3p, bringing the total for the year to 6p, up 7%.
