Trading Update

RNS Number : 6695M

McBride PLC

10 January 2019

 

10 January 2019

McBride plc

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, today provides a trading update for the six months ended 31 December 2018.

The Group's first half continuing revenues at constant currency were 10.8% higher than the prior year. Excluding the benefit of first quarter revenues from Danlind, continuing underlying revenues were 6.0% higher. Underlying Household division sales were 5.9% higher, primarily as a result of higher sales in the East and UK regions (up 23.4% and 10.5% respectively).

As outlined in our recent AGM trading update, the first half year has seen raw material, packaging and logistics costs higher than anticipated, particularly in the second quarter. These have been partly mitigated by improved sales volumes and lower overheads.  The pricing outlook for many of our key raw materials has improved recently and in the absence of this reversing significantly, the Board expects full year earnings to be in line with expectations, with full year profit delivery weighted to the second half. 

The sale of the European Personal Care Liquids business was successfully completed during the second quarter and we continue to progress plans for the closure of our UK Aerosols factory in the second half year as expected.  The integration of Danlind continued with our Danish factories transitioning onto the McBride ERP system in December.

The Group will announce its interim results for the six months ended 31 December 2018 on 21 February.

Rik De Vos, Chief Executive said;

"The Group has made significant strategic progress in the first half of this financial year completing the sale of Personal Care Liquids, integrating Danlind onto the McBride systems and managing our revenue growth.  Margins remain our key focus at present and the recent improvement in the pricing outlook for raw materials following almost two years of significant inflation will see some recovery of the cumulative cost impact to the business. I remain confident that the Group continues to be well positioned to exploit the growth and margin opportunities in the remainder of this financial 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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