McBride first-quarter revenue drops but on track for full year
McBride reported a drop in first-quarter revenue on Tuesday but said it remains on track to meet expectations for the full year, which it reiterated would be weighted towards the second half.
In an update ahead of its AGM, the manufacturer and supplier of products for the household and personal care market said first-quarter revenues were down 6.7% at constant currency compared to the same time a year ago. Sales in the household division were 5.1% lower, mostly due to the loss of a key contract at the end of the last financial year in Germany and weak underlying demand in France.
In the Personal Care & Aerosols division, sales were off 12.4% compared to last year, with half the drop associated with the exit last year of non-profit making contracts as part of early PCA strategy actions to consolidate manufacturing into fewer locations. A transformation strategy review for the PCA business has now commenced.
McBride said it continues to focus on cost and efficiency initiatives to mitigate the impact of currency, raw material and other cost pressures.
Chief executive Rik De Vos said: “The group is making good progress on its growth initiatives, including the completion of the Danlind acquisition, while ongoing activity to deliver on our targeted opportunities mean we remain on track to see growth in our household business as expected this financial year."
The company said it remains on track to deliver its full year expectations and reiterated that the performance for the year will be weighted towards the second half as increases in revenues from its ‘Grow’ strategy begin to bear fruit.
At 1040 BST, the shares were down 6.7% to 215.25p.