McBride reports record profits as it buys Czech competitor

SHAMPOO to mouthwash maker McBride has seen its operating profits surge by 38% to £50m over the past year.

The company – which has its UK headquarters and main factory at Middleton, in Greater Manchester – has also announced that it has bought a Czech rival for £8m.

McBride’s results for the year to the end of June 30 show that its revenue also increased by 2% to £812.2m from £792.4m last time.

It has also reduced its debt from £82.4m to £60m and increased its full year dividend to 6.8p from 6p last time.

McBride said that it offset increases in raw material prices witnessed in the second half of the year by further improvements in procurement and ongoing operational efficiencies.

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The company – which employs 5,000 people and has factories at Burnley, Hull, Bradford, Barrow as well as Middleton – is currently restructuring its UK supply chain.

It has bought a 70% stake in Dermacol, which is a privately owned, Czech-based manufacturer of skincare products, for £8m and expects to buy the remaining 30% of the company in the future.

Dermacol had pre-tax profits of £800,000 to the end of last year.

The acquisition provides McBride with an established private label product range in the largest sector of the European personal care market and creates the base for future growth.

Chris Bull, Chief Executive, said: “McBride has delivered record sales, profits and cash flow, underpinned by a strong return on capital employed.

“We have acquired three businesses, two of which are in the strategic personal care and skin care sectors, and have initiated restructuring projects in UK and Italy which will deliver significant cost savings.

“Our markets across Europe have remained competitive and we have seen extensive branded promotional activity, although there is some evidence that this may be easing.

“As previously announced we are experiencing an increasing trend in our raw material costs and are actively engaged in mitigating them.

“Trading since year-end has been in line with our expectations.

“We remain focused on growing shareholder value and, although weak retail markets and raw material inflation will remain challenging in the short term, our balance sheet remains strong.

“McBride is better placed than previously to manage raw material cost inflation and we believe that our actions will be effective.”