McBride raises full year profit guidance but uncertain about Brexit

Household and personal care manufacturer McBride said its adjusted operating profit for the year will be slightly ahead of previous expectations but it cannot not determine the long-term effects of Brexit.

In its trading update for the year ended 30 June the company said the better performance was due to better-than-anticipated cost saving initiatives which included the company’s restructuring project.

McBride said purchasing-driven savings, in part a result of the decision to reduce the company’s range of products and customers, also contributed to the better results.

The company said since the UK decided to leave the European Union on 24 June there has not been an impact on the day-to-day operations, however the company said it was too soon to determine the long-term effects of Brexit. About 70% of its subsidiaries are based outside the UK.

The Manchester-based company’s aim to reduce the number of small customers it served is on track as full year sales decreased by about £6m.

On a constant currency basis, the company’s revenues for the year ended 30 June were 1.9% lower than 2015. McBride said it was due to the effects of ongoing price pressures in key markets which affected revenue.

The company added that it “remains confident in the execution of the ‘Manufacturing our Future’ strategy, through the three-stage 'Repair, Prepare, Grow' implementation plan”.

McBride is Europe’s biggest maker of retailer own brand household and personal care goods. It has over 20 manufacturing operations in 10 countries including France, Belgium, Spain, China, Vietnam and Malaysia. Its brands includes Oven Pride and Limelite.

Shares in McBride were up 3.27% to 158p at 1504 BST.