McBride has revealed an improvement in own-label household and personal care sales in the first six months of 2013.
The supplier said it expected annual group sales to fall by 5% for the year ending 30 June, largely as a consequence of a 27% slump in contract manufacturing sales. The company is winding down its lower margin contract manufacturing business to focus on own label.
McBride said own-label sales had improved and would be in line with last year. In the first half of the financial year, own-label sales fell 2% so today’s announcement implied 2% growth in the second half.
A major programme of new product launches over the past six months helped to drive the growth.
“We are encouraged by the acceleration in revenue growth in the last eight weeks of the period driven principally by new product launches and with further launches expected, we anticipate that this momentum should continue,” said Panmure analyst Damian McNeela.
McBride will announce its full-year results on 3 September.