AGM Trading Update

RNS Number : 3917U

McBride PLC

24 October 2017

 

24 October 2017

McBride plc

AGM Trading Update

McBride plc (the "Group"), the leading European manufacturer and supplier of Co-manufactured and Private Label products for the Household and Personal Care market which today holds its 2017 Annual General Meeting, provides the following trading update.

At this early stage of the year the Board is comfortable that the business remains on track to deliver its full year expectations.

As we indicated at the time of our recent full year results announcement, we expect our current year financial performance to be weighted towards the second half of the year as increases in revenues from our "Grow" strategy begin to benefit the business.

During the first quarter revenues were 6.7% lower at constant currency than the prior year.   Household division sales were 5.1% lower, primarily as a result of the impact of the loss of a key contract at the end of the last financial year in Germany (East) and weak underlying demand in France (North). Our East business has since recovered this lost business and UK and Spain (South)  have secured contract wins and have solid growth prospects ahead. In the Personal Care & Aerosols (PCA) division sales were 12.4% lower than last year with half of this decline associated with the exit last year of non-profit making contracts as part of early PCA strategy actions to consolidate manufacturing into fewer locations.  A transformation strategy review for the PCA business has now commenced.

The Group continues to focus on cost and efficiency initiatives to mitigate the impact of currency, raw material and other cost pressures.

As previously announced, the acquisition of Danlind a/s, a Danish producer of auto dish-wash and laundry products, completed on 29 September 2017.  With the exception of this, there have been no material events or changes in the financial position of the Group since 1 July 2017.

Rik De Vos, Chief Executive said;

"The Group is making good progress on its growth initiatives, including the completion of the Danlind acquisition, while ongoing activity to deliver on our targeted opportunities mean we remain on track to see growth in our Household business as expected this financial year."

For further information please contact:

McBride plc
Rik De Vos, Chief Executive Officer	0161 203 7570
Chris Smith, Chief Financial Officer	0161 203 7570
FTI Consulting	020 3727 1017
Ed Bridges, Nick Hasell

Note: This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation which came into effect on 3 July 2016.

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