McBride shares slump after profit alert
Shares in household cleaning products maker McBride tumbled by nearly a third after it warned rising costs will hurt annual profits.
The group said more expensive raw materials and higher distribution costs were set to see annual underlying pre-tax profits fall by around 10% to 15%.
McBride shares slumped 31% on the profit alert.
The Manchester-based firm said the increased costs were offsetting good sales growth, with underlying revenues up 6% in the first half to December 31 and further “good” growth expected in the final six months.
Its gloomier profit outlook comes as it said improvements in raw material pricing were set to be lower than it had expected in early January.
The group – which makes products including Surcare, Clean ‘n Fresh and Ovenpride – added that distribution costs were also rising higher than previously forecast.
McBride was last year impacted by lower-than-expected costs as well as higher operating costs related to running its warehouses and distribution network.
Underlying pre-tax profits fell 8.5% to £33.2 million for the year to June.
It has been restructuring its personal care and aerosols business, having announced plans to close its UK aerosols operation in Hull.
The company also sold its European personal care liquids business for £12.5 million to rival Royal Sanders.
As well as its own products, McBride has a large private label business making goods under retailers’ own brands.