AGM Trading Update

RNS Number : 8214E

McBride PLC

23 October 2018

 

23 October 2018

McBride plc

AGM Trading Update

McBride plc (the "Group"), the leading European manufacturer and supplier of Contract Manufactured and Private Label products for the domestic Household and professional cleaning and hygiene markets, provides the following trading update ahead of its 2018 Annual General Meeting later today.

The Group's first quarter continuing revenues at constant currency were 15.4% higher than the prior year. Excluding the benefit of first quarter revenues from Danlind, continuing underlying revenues were 5.5% higher.  Underlying Household division sales were 5.3% higher, primarily as a result of higher sales in the East and UK regions (up 20.8% and 11.3% respectively).  Our expectations for  full year revenues are unchanged.

During the first quarter, raw material and packaging costs together with logistics costs, especially in northern Europe, have been slightly higher than anticipated but have been mitigated by improved sales volumes and lower overheads.  At this time, there is increased volatility and uncertainty around future raw material and packaging cost levels and whilst the Group will always seek to recover or mitigate any increased input inflation, the timing of these actions typically lag their impact. In the absence of further near term raw material and packaging cost rises, the Board expects full year earnings to be in line with expectations. 

The sale of the European Personal Care (PC) Liquids business remains on track, with completion expected in the final quarter of 2018, as previously announced, and the integration of Danlind is progressing well.

Rik De Vos, Chief Executive said;

"The Group is busy completing the sale of PC Liquids, integrating Danlind and managing revenue growth to expectations.  Margins continue to be a key focus especially against the backdrop of potentially further increased input costs.  We continue to outperform our sector both financially and operationally in what is a particularly challenging environment and the Group is strongly positioned to exploit further growth and margin opportunities in the coming year and beyond."

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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