Household goods manufacturer McBride has said it is trading in line with expectations thanks to a solid performance in Germany.
Group private label sales for the six months to 31 December 2014 grew by 0.5% in constant currency.
Performance was boosted by “strong growth” in Germany, which was partially offset by a weaker performance in Italy and Spain and a general softening in the rest of Europe.
McBride added that its UK restructuring plans are “progressing well” and it remains on track to deliver targeted savings of £12m by 30 June 2016, of which at least £3m will benefit the current financial year.
Analysts at Shore Capital welcomed the trading update after “a sustained period of volatility volatility, disappointment and share price weakness”, but retailed a ‘sell’ recommendation.
Shore Capital stated: “With real incomes now rising in the UK at least, is there a case to expect proprietary brands to perform more robustly as consumers may trade up? If so, then that may be a further concern for McBride, noting as we do that in recent years, strong promotional participation by proprietary brand manufacturers has also pressurised private label participation in the household goods and personal care (HPC) segment of the UK.”
McBride announced in December that Rik De Vos will join as chief executive officer on 2 February 2015.
The firm’s full first half results will be released on 5 February.