14th Nov 2013 12:21
LONDON (Alliance News) - Packaging and labelling company Macfarlane Group PLC Thursday said the business had experienced mixed fortunes since the start of the second half in July, but remained confident of meeting full-year expectations.
In an interim management statement, the company said sales for its packaging distribution arm were above 2012 for the year to date, with strong demand since June. Macfarlane attributed this to new business wins, increased penetration in the third party logistics sector, and growth in internet retail sales.
Gross margins for the division remains slightly lower than in 2012, due to the impact of lower sales prices and some recent supplier input price movements which have still to be fully recovered.
But Macfarlane said, with overhead costs continuing to be well controlled, operating profit before exceptional items is now at a similar level to that achieved in 2012.
The company said manufacturing operation sales were down when compared with 2012 reflecting actions taken to focus on higher margin business.
However it said: "the improved customer mix and focus on the higher added-value areas, both in the Labels business and in the Packaging Design and Manufacture business, have helped maintain the improvement in gross margin."
Operating profit before exceptional items, for the division remains ahead of that achieved in 2012, Macfarlane added.
The stock was trading at 38.62 pence Thursday morning, down 1.3%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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