14th Jan 2020 10:03
(Alliance News) - McBride PLC on Tuesday issued a profit warning for financial 2020, as it posted a 4.4% year-on-year drop in group revenue due to weak trading activity in its core Household division and exit from UK Aerosol manufacturing in financial 2020.
Shares in the company were down 17% at 66.20 pence each in London.
The company, which makes own branded household goods for retailers, also said it has commenced a review of its strategy and operations following the appointment of Ludwig de Mot as chief executive on November 1, 2019. De Mot replaced Rik de Vos, who stepped down in July 2019 after four years in the role since 2015.
Results of the strategic review are expected to be released in the final quarter of the year ending June 30.
McBride, which is based in London, expects financial 2020 adjusted pretax profit to be 15% lower than current market expectations of GBP22.1 million due to lower revenue generation. Adjusted pretax profit amounted to GBP24.5 million and revenue stood at GBP721.3 million in financial 2019.
For the first half to December-end, the company recorded a 1.4% year-on-year drop in revenue due to slowdown in last two months of the period, particularly in the UK.
"H1 UK revenues were 8.0% lower year-on-year, reflecting weaker Private Label activity in the period. Our South, East and Asian geographies performed well in the half year, reporting growth versus the prior year of 15.7%, 1.6% and 10.7% respectively. France and North continued to see declines versus the prior year, consistent with the second half of the last financial year," McBride said.
The company now expects Household division revenue for financial 2020 to fall 2% year-on-year as a result of the poor first half outcome. In financial 2019, Household revenue totalled GBP673.6 million.
McBride is slated to release its interim results on February 20.
By Tapan Panchal; [email protected]
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