3rd Jul 2018 09:43
LONDON (Alliance News) - McBride PLC on Tuesday warned on its full year profit due to weak recent sales, while it also has announced the sale of its personal care liquids business.
McBride, which makes household and personal care products, said after disappointing sales in May and June it now expects adjusted pretax profit to be below market expectations.
In its Household business, McBride expects revenue to be 16% higher year-on-year in the second half of 2018 including a full contribution from last year's acquisition Danlind.
Since February, it continued, Household revenue in France has suffered though Germany has done well, but then a weak May and June negated this.
In Personal Care & Aerosols the company's loss will be larger than expected mainly due to lower revenue, but it expects the business to breakeven from July next year following the sale of UK Aerosol operations in Hull.
McBride also said Tuesday it is selling its European personal care liquids business to Royal Sanders Group for GBP12.5 million in cash, with the sale part of its transformation of the Personal Care Aerosols arm.
Chief Executive Rik de Vos said: "The agreement to sell our European Personal Care liquids activities follows a comprehensive review of the business and marks the final element in the transformation plan for our European PCA activities."
"The transaction enables the business to be developed as part of a dedicated personal care manufacturer of greater scale and positions McBride's European operations as a focused Household business with a clear strategy to deliver sustainable profitable growth."
Shares were 5.3% lower on Tuesday morning at a price of 125 pence each, though had reached 113.60p earlier in the session.
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