6th Sep 2018 12:02
LONDON (Alliance News) - McBride PLC held its annual dividend Thursday as reported profit dived despite higher revenue as the private-label consumer goods maker continues to restructure a loss-making unit.
For the year ended June, pretax profit halved to GBP7.8 million from GBP19.2 million the year prior. This was despite revenue rising 7.1% to GBP755.0 million from GBP705.2 million the year before.
During the year, McBride set about transforming its loss-making personal care & aerosols unit. In February, it sold its skincare business in Brno in the Czech Republic and has since closed its UK aerosol operations in Hull.
In July, it agreed to sell its personal care liquids business to Royal Sanders BV. This deal is set to close in the final quarter of 2018.
Excluding discontinued operations, pretax profit rose 35% to GBP26.5 million from GBP19.7 million the year prior. This was after revenue grew 9.0% to GBP689.8 million from GBP632.9 million the year before.
"Whilst our trading performance in the year ended slightly behind our early expectations, we have continued to outperform our sector both financially and operationally in what has been a particularly challenging environment," McBride Chief Executive Officer Rik De Vos said. "We achieved good growth in our key categories and geographies, the integration of Danlind is progressing well, and the exit from a major part of our Personal Care & Aerosols business in Europe allows us to focus fully on our core activities in European Household."
McBride proposed a 2.8 pence per share final dividend, down 3.4% from 2.9p the year prior. For the full year, however, the dividend remained flat at 4.3p.
"In the current year we remain focused on the profitable delivery of our anticipated volume growth whilst continuing to take actions to mitigate strong input cost inflation, including commercial price recovery from our customers," De Vos added. "We will also maintain close control of overheads whilst investing in key focus areas that will enable McBride to fully exploit its scale and cost advantage within its supply chain."
"Revenues in the first few months of the new financial year have been satisfactory and whilst certain cost pressures persist, at this stage the board remains confident the group will achieve its full year expectations", De Vos concluded.
Shares in McBride were marginally lower at 130.34p on Thursday in London.
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