24th Feb 2016 08:30
LONDON (Alliance News) - Household and personal care products company McBride PLC on Wednesday said its pretax profit rose 78% in the first half of its financial year thanks to lower costs, as revenue dipped
McBride said its pretax profit for the six months to the end of December was GBP13.0 million, significantly higher than the GBP7.3 million it posted a year earlier.
Revenue was lower, down to GBP344.1 million from GBP364.7 million, but this was offset by lower sales costs and administrative expenses as the company continues to restructure operations in the UK and works to simplify the business.
The 5.6% revenue drop was driven primarily by currency effects, as revenue in constant currencies edged up 0.4%. Household cleaning product sales for the group rose in most regions, though UK sales were lower due to weaker private-label sales and the end of some contract manufacturing business. Sales of personal care products, such as shampoos, were down, with a weak UK market offsetting gains made in Eastern Europe and Asia.
McBride declared an interim dividend of 1.2 pence per share, 29% down from the 1.7p paid out a year earlier but in line with the company's new dividend policy.
"We are pleased with our progress in the first half and the improved profitability following the launch of our strategic transformation plan. The commitment and focus of the McBride team on the execution and delivery of our objectives is very encouraging and a critical aspect for future success," said Chief Executive Rik de Vos.
Shares in McBride were up 7.6% to 166.25 pence on Wednesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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