Trading Update

RNS Number : 3460T

McBride PLC

03 July 2018

 

3 July 2018

McBride plc

Trading Update

McBride plc, the leading European manufacturer and supplier of Co-manufactured and Private Label products for the Household and Personal Care market, provides the following trading update for the twelve months ending 30 June 2018.

Following weaker than expected sales levels in May and June 2018, the Group now expects full year adjusted Profit Before Tax to be marginally below the lower end of analyst expectations. Second half revenues for the Household segment on a like for like basis are showing growth of 3.8%. Total Household revenues in the second half, including Danlind, are expected to be 15.8% higher than the same period of last financial year.

In the period since the Group's Half Year results announcement in February, Household revenues in the French market have continued to show declines year on year but this has been balanced by better than expected revenues in Germany and from Danlind, such that the Group had been trading in line with its overall internal expectations.  However, the Group saw weaker than expected sales levels in certain markets in May, and whilst June saw an improvement, performance across the two months means that adjusted Profit Before Tax will be marginally below the lower end of analyst expectations. 

Input costs overall have remained stable in the period since January, however the impact from increasing volumes in the final quarter have temporarily added to the Group's operating costs, primarily from higher distribution and warehousing costs and some short term inefficiencies at certain factories.

Meanwhile, our Personal Care & Aerosols (PCA) business will deliver losses marginally higher than expected levels, mainly due to revenue weakness. The Group continues to implement the transformation plan for PCA at pace and in May announced proposals to close the UK Aerosols operations at Hull.  Collective Consultation with the affected employees has recently been completed, with closure now expected in Spring 2019.  As a result of this closure and the absorption of certain volumes into our French aerosols operations the Group expects the aerosols activities to be trading at breakeven levels from July 2019.  Additionally, the Group has today announced, under a separate statement, that it has agreed terms for the sale of the European Personal Care liquids business for £12.5m with completion of the transaction expected in the last calendar quarter of 2018

The Group will publish its preliminary results for the 12 months to 30 June 2018 on 6^th September 2018.

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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