3rd Sep 2013 08:00
LONDON (Alliance News) - McBride PLC Tuesday reported a drop in revenues and profits for the year ended June 30, as its cost savings and new-product launches failed to offset its reduction in contract manufacturing activity.
The British-based manufacturing business, which specialises in household and personal-care products, said its pretax profit fell 22% to GBP9.5 million in the fiscal year, compared with GBP12.1 million a year earlier. It said its net profit fell 35% to GBP5.9 million, compared with GBP9.1 million in profits in the prior year.
The company said that while new-product launches boosted private-label revenue growth by 2% in the second half of the year, profits and revenues were hit by a wind-down of its contract manufacturing business in Western Europe.
McBride maintained its full year dividend at 5.0 pence per share.
It reported full-year revenues of GBP761.4 million, a 6.5% fall when compared with the GBP813.9 million in revenues reported a year earlier.
The company said it saw particularly strong growth in Poland, as well as the rest of the world, as new business wins and product launches in Asia boosted sales in the region. It also said it had made strong progress in Australia with contract wins on products supplied from its Malaysian and European factories.
Its said its UK revenue fell 7.3% due to a overall weak retail environment and high levels of branded promotional activity. Revenue from its Western European business fell 9% largely due to continued weakness and the reduction in its contract manufacturing business. This was also the biggest contributing factor to a drop in overall full year revenues.
McBride shares were trading at 131.00 pence shortly after the opening on Tuesday, down 1.00 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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