20th Feb 2019 09:10
LONDON (Alliance News) - Shares in household and personal care goods manufacturer McBride PLC dropped on Wednesday as the firm warned of lower annual profit due to cost pressures.
McBride shares were trading down 32% at 88.85 pence each.
The company said that it continued to see pressure on its cost base, with the price of raw materials showing improvement since the end of the first half in December, but "not to the extent anticipated in early January".
In addition, distribution costs continue to rise "beyond our previous estimates", McBride said, due to market rates and efficiency challenges driven by logistics capacity shortfalls and internal service gaps.
Because of this, McBride said it expects a reduction of between 10% and 15% in its annual adjusted pretax profit on the prior year.
For the year to June 2018, McBride's adjusted pretax profit came in at GBP33.2 million, meaning that, in the worst case of its guidance, the reduction could lead to financial 2019 adjusted pretax profit being GBP28.2 million.
Despite this, the company reported good sales growth in the first half period with adjusted revenue up 6.0%.
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