McBride is back in the black despite reporting an 11% fall in half-year sales.
Pre-tax profits at the household and personal care own-label manufacturer rose to £5.9m in the last six months of 2012 - compared to a loss of £400,000 in 2011 – the firm’s half year report showed.
Sales fell to £378.2m from £423.1m the previous year, although operating profits increased 237% from £2.7m to £9.1m.
“The most pleasing aspect of our results today is the 2% revenue growth achieved in own-label categories that we have identified as being central to our long term growth plans,” said CEO Chris Bull.
“This is a clear sign that consumers are preferring own-label as they seek cost-effective but high performing household and personal care products. Growth in adjusted operating profit of 13% is also positive, reflecting the improved mix and increased efficiencies that we are driving across the business.”
Last month, The Grocer reported how the Oven Pride maker had seen a 6% drop in sales for the last six months of 2012 after it wound down its contract manufacturing business. The firm said trading at the end of December has been in line with the board’s expectations, and added a significant increase in product launches in the second half of 2013 would help accelerate further own-label sales growth.
However, McBride said the full impact would be dependent on the exact timing of the remaining launches and wider economic conditions.
“McBride’s interim results are in line with expectations, with headline numbers distorted by the timing of business exits/wins. Consumer markets remain fragile but we anticipate a stronger 2H as new launches start to feed through,” said Investec analyst Nicola Mallard.
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