McBride Sees 4.4% Drop In Half-Year Group Revenue
The new chief executive at McBride, Ludwig de Mot, has labelled the group's recent performance as "disappointing", as the household and cleaning products manufacturer posted a decline in half-year group revenue.
Revenue for the period was £350.4 million (€418.6 million), which was a 4.4% decline at constant currency levels, and a 5.1% decline on a reported basis.
Revenue at its household products division was £334.4 million (€399.5 million), which was a 1.4% decline at constant currency levels (-2.1% reported).
Commenting on the group's performance, de Mot said, "Since joining McBride in November, I have visited all of our sites and met many of our people and been impressed by their commitment to making McBride a successful business.
"McBride has a strong market position, but the Group's recent performance has been disappointing. Accordingly, as announced last month, I have initiated a review of the Group's strategy, organisation and operations, which I expect to report on at the time of our year-end results announcement in September."
In terms of its half-year performance, McBride said that it saw revenue growth in its South and East divisions, as well as Asia, while its UK, France, and North businesses saw declines.
It is making a number of logistical changes to its operations – a new factory in Malaysia is set to be operational by the end of this year, while its Barrow site in the UK is expected to close this summer.
Last year, McBride completed the sale of its European Personal Care (PC) Liquids business, and the second quarter also saw it sell land associated with its former aerosols site in Hull, for £3 million.
The group posted an operating profit for the half-year period of £8.5 million (€10.15 million), down from £15.6 million (€18.6 million) a year earlier.
Looking ahead to the coming quarter, de Mot said, "Our third quarter revenue run rates are as expected. Our revenue outlook remains in line with our expectations despite our markets remaining challenging.
"Material costs are tracking consistently with the first half year. The board's expectations for the full year remain in line with our January trading update."
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.