Profit warning for McBride
HOUSEHOLD and personal care products manufacturer McBride has issued a profit warning after seeing weaker consumer demand in Western Europe.
In a fourth quarter trading update the company said full-year revenues will be 3% lower than expected, and adjusted operating profit will also be lower.
It also stressed that it is accelerating cost reduction plans.
The listed group has one of its largest production sites in Middleton, Manchester, as well as sites in Barrow, Bradford and Hull.
It said: “Our previously announced product launches are being executed broadly in line with plan, but underlying sales volumes have been affected by weaker consumer demand in Western Europe, combined with a very recent, unusually strong and prolonged period of branded promotional activity.
“Accordingly, group revenue for the full year is now expected to be around 3% lower than expectations, reflecting some continuation of weaker consumer demand into our fourth quarter, and therefore adjusted operating profit will also be lower.
“Looking forward, the board believes that McBride’s strategy will lead to growth in private label revenue during our fourth quarter, as a consequence of our product launch plan, and despite the weak market conditions. In addition, decisive action is being taken to accelerate existing cost reduction plans.”
