McBride said today that it expects its adjusted operating profit for the full year to 30 June to come in slightly ahead of its previous expectations.
In a full trading update, Europe’s largest manufacturer of private label household and personal care products said its full year performance had benefited from better than anticipated progress on cost saving initiatives, including the final year impact of its UK business restructuring project. Purchasing-driven savings, in part a result of the decision to reduce the group’s range of products and customers, also contributed to the result.
McBride added that a simplification programme to reduce the number of small customers served by the group remained on track with full year sales lower by approximately £6m as a result of this action. Additionally, the group’s revenues continued to be affected by ongoing price pressures in a number of key markets, especially in the UK. Consequently, on a constant currency basis, McBride said that revenues for the year ended 30 June 2016 were 1.9% lower than the prior year.
Meanwhile, the group stated that there had been no impact on its day-to-day operations from the outcome of the EU referendum in the UK, adding that it remains too early to determine the longer-term effects on McBride’s activities, of which approximately 70% are in subsidiaries based outside the UK.
The statement concluded: “The Board remains confident in the execution of the ‘Manufacturing our Future’ strategy, through the three-stage ‘Repair, Prepare, Grow’ implementation plan”.
McBride will announce its preliminary results for the year ended 30 June 2016 on 7 September 2016.