23rd Oct 2018 10:10
LONDON (Alliance News) - McBride PLC on Tuesday said it saw a strong revenue growth in the first quarter of its current financial year, helped by its recent acquisition of Danlind.
Ahead of its annual general meeting, the consumer household and personal care products company said revenue in the three months to September-end grew by 15% on a constant currency basis, thanks to the strong performance of its eco-friendly detergents producer Danlind. Underlying revenue was up 5.5% year-on-year.
In September last year, McBride acquired Denmark-based Danlind for GBP10.8 million.
McBride said sales in its Household products division came in 5.3% higher, primarily as a result of higher sales in the East and UK regions, which grew during the period by 21% and 11%, respectively.
However, the company warned that raw material, packaging and logistics costs have been slightly higher than anticipated. McBride said there is increased volatility and uncertainty around future raw material and packaging cost levels.
Back in July, McBride decided to sell its European Personal Care Liquids business to Royal Sanders Group for GBP12.5 million in cash, as a part of its transformation of the Personal Care Aerosols arm.
McBride on Tuesday said the transaction is on track and is expected to be completed in the final quarter of 2018.
"The group is busy completing the sale of personal care liquids, integrating Danlind and managing revenue growth to expectations," said Chief Executive Rik De Vos.
"We continue to outperform our sector both financially and operationally in what is a particularly challenging environment and the group is strongly positioned to exploit further growth and margin opportunities in the coming year and beyond," added Rik De Vos.
McBride shares were trading 4.2% lower on Tuesday at 133.00 pence each.
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