Full-year pre-tax profits have slumped 76% at own-label cleaning products manufacturer McBride due to rising raw material costs.
Profits tumbled from £29.6m to £7.1m in the year to 30 June, on flat sales of £812.4m. UK sales dropped 3% to £310.7m during the period.
Although “prompt action” had been taken to recover raw material inflation, the “time-lag” had contributed to the profits fall, CEO Chris Bull said.
“Raw material inflation has continued into our new financial year and our actions to recover it are ongoing, but where this has not been possible in the current weak trading environment, we are exiting non-profitable business,” he added.
McBride also took a pre-tax exceptional charge of £9.2m for the proposed closure of its site in Burnley during the period. Additional restructuring would bring the total charge to £21m, the company added.
Own-label washing up liquid off Co-op shelves for a month (3 September 2011)
McBride to close Burnley site (22 July 2011)