McBride has reported a 6% drop in sales for the last six months of 2012 after it wound-down its contract manufacturing business.
The manufacturer of household and personal care products added that own-label sales fell 2% as a result of exiting some low-margin non-core business. However, it said sales from its ‘core and future growth’ categories in own-label had grown by 2%.
“As we reported at the full year and again at our first quarter interim management statement in October, our financial performance this year will be second-half weighted reflecting a wind-down in contract manufacturing that is allowing us to grow our private label business,” said McBride CEO Chris Bull.
McBride said a significant increase in product launches in the second half of 2013 would help to accelerate growth.
The company forecast that adjusted operating profits for 2012 would be 12% higher and net debt at the end of the year would be about £80m.
“The company expects to launch a significant number of new product launches in 2H 2013 which should drive double digit revenue growth in private label, but a recent slow-down in demand in core European markets prompts a degree of caution,” said Panmure analyst Damian McNeela.