Household products maker McBride has reported a 17.8% drop in annual profit, citing rising raw material costs.
McBride, which makes and distributes both private label and branded goods, reported adjusted pretax profit for the full-year ended June 30, of £19.9 million (€23.2 million), compared with £24.2 million (€28.2 million) last year.
Full-year revenues at constant currency levels were down 4% following what the group said was a 'year of two halves' – in the first half, it reported growth of 1.7%, while in the second, revenue was down 9.5%.
It noted that 'exceptional input cost inflation' impacted its fourth quarter, driven by COVID-19 related shocks to the supply chain, and 'rapid and exceptional' inflation of key feedstocks.
A Mixed Performance
"This year has been one of two halves, with a strong first half followed by a more difficult second," commented Chris Smith, McBride chief executive. "In our recent trading update we highlighted the supply side cost inflation being felt due to rapidly increasing raw material costs and freight capacity.
"The £10 million of savings expected in the current financial year leave us well placed to meet these challenges and our efforts to recoup input cost rises from customers continue. Our balance sheet remains robust and we expect current market conditions to create opportunities for selected in-fill acquisitions at attractive valuations."
The company has kept its 2022 outlook unchanged, despite issuing a profit warning last month.
"We continue to anticipate a weak first half year, especially when compared to our strong first half last year, with profits therefore heavily weighted to the second half of the year," Smith added.
At the start of this year, McBride said that it was already seeing benefits from its new 'Compass' strategy, which has seen the business aligned into five divisions.