Sales down at toiletries firm
WEAKER European sales have contributed to a fourth quarter sales dip at own-brand toiletries manufacturer McBride, which has sites in Yorkshire.
In a trading update for the year to June 30 the company said operating profits are on target but sales in the final quarter will be 3% lower.
“This reflects ongoing branded promotional activity in UK combined with weak retail sales across Europe,” said McBride.
Against a backdrop of rising raw materials costs, up 4%, the business has also started a further round of cost-cutting at its UK businesses in a bid to save £4m a year.
The £4m cost of this restructuring, which follows the loss of 160 North West jobs last year, will take McBride’s exceptional charges for the year to £14m.
“We believe our markets will remain volatile and there remains a significant risk that our material costs will rise by a further 4-6% during the next financial year,” said the company.
“Our business model is designed to manage raw material increases effectively, although inevitably there will be a delay before recovery from customers.”
The firm has sites in Bradford and Hull and four factories in the North West. It makes shampoo, shower gels and domestic cleaning products for retailers such as Tesco, Morrisons, The Co-op and Sainsburys.
Year-end net debt is expected to be in line with expectations reflecting and the group has just agreed a new five-year €175m revolving credit facility agreement “on attractive terms”.
The results for the year will be announced on September 2.
