McBride downgrades profit guidance after weak May and June
Source - SMW
Personal care product provider McBride said it expected its pre-tax profit for the year through June to be 'marginally below' the lower end of market expectations.
McBride also announced that it had agreed to sell its European personal care liquids business to Royal Sanders Group for £12.5m.
The downgraded came after the company experienced weaker-than-expected sales levels in May and June.
Second-half revenues for the household segment on a like-for-like basis were showing growth of 3.8%, McBride said, while total household revenues were expected to be 15.8% higher, including the Danlind acquisition.
Household revenues in the French market had continued to show declines, though this has been balanced by better-than-expected revenues in Germany and from Danlind.
'However, the group saw weaker-than-expected sales levels in certain markets in May, and whilst June saw an improvement, performance across the two months means that adjusted profit before tax will be marginally below the lower end of analyst expectations.'
Input costs had remained stable, however the impact from increasing volumes in the final quarter temporarily added to the group's operating costs, primarily from higher distribution and warehousing costs 'and some short-term inefficiencies at certain factories'.