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McBride Shares Slump On Profit Warning, CEO Departure

Published on May 2 2019 9:39 AM in Private Label tagged: McBride / Cleaning Products / Hygiene

McBride Shares Slump On Profit Warning, CEO Departure

Cleaning products maker McBride Plc has issued a profit warning for the second time this year and said chief executive officer Rik De Vos is leaving the company, sending its shares sharply lower.

The company, which makes laundry and cleaning brands, will leave once his successor is appointed.

His exit comes as the McBride said full-year earnings would be slightly lower than market estimates, due to weaker-than-expected third-quarter sales in Germany, France and Italy.

Shares in the small-cap company tumbled 13.5% to 91 pence by 0723 GMT.

Stock Fall

Thursday's stock fall is the biggest one-day loss since February, when McBride forecast annual adjusted earnings to be about 10-15% lower than last year as it struggles with higher costs.

"In what remains a challenging retail environment across Europe, it appears CEO Rik De Vos has decided that moving forward meaningfully quickly could be a struggle for the company and decided to explore other opportunities," Liberum said.

Liberum said the continuing yellow vest protests in France could also have impacted McBride's results.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

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