Household and cleaning products manufacturer McBride has said that trading in the second half of its financial year was 'marginally weaker than expected', however the business still saw full-year revenues rise.
According to a trading update for the 12 months to 30 June, published ahead of its preliminary results for the year on 5 September, underlying full-year revenues from continuing operations at constant currency were 2.7% higher than the previous year.
'Weak Sales Activity'
However, second-half revenues were 1.7% lower than in the first half, with the UK and France seeing 'weak sales activity' and its East region seeing 'good growth, albeit at a lower rate than seen in the first half year'.
In its Household division, underlying second half growth at constant currency was 1.6%, while full year growth ended at 3.7% year-on-year.
Adjusted operating profit, adjusted PBT and adjusted EPS for the year are expected to be 'broadly in line' with current market expectations, the group said.
'Difficult Start'
McBride added that it has made a difficult start to the new financial year, with sales activity levels 'weaker than expected', mostly due to slower demand levels across a number of markets.
It also said that pricing actions last year led to a number of contract losses, which is also impacting its performance.
Looking ahead to the coming year, it said that it expects Household revenues to be 'flat' for the 12 months to 30 June 2020 with Group earnings expected to be 'slightly below' those of the previous year.
Rik De Vos, McBride chief executive, will step down from the board on 19 July and leave the company on 31 August.
The company said that Chris Smith, its chief financial officer, will assume the role of interim CEO from 22 July while the company searches for Rik's successor.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
