Branded rivals squeeze McBride profits

3rd Sep 2013 07:39

Private label consumables group McBride said an increase in branded competition impacted full year earnings but on a brighter note said it had started to make progress after a good start to the new financial year.The group, which makes home-brand household and personal care products, said revenue fell to £761.4m for the year ended June 30th 2013 from £813.9m a year earlier after it wound down selected contract manufacturing activities. Pre-tax profit fell to £9.5m during the year from £12.1m previously. Chief Executive Officer Chris Bull commented: "This has been a challenging year, during which we have wound down selected contract manufacturing business, whilst also facing an increase in branded competition." "Despite this, we have started to make good progress, with our successful product launch programme contributing to Private Label revenue growth of 2% in the second half."McBride added: "Although the economic environment remains challenging, we are seeing Private Label retail sales volumes grow in a number of our core markets."McBride has recommended maintaining the full year dividend payment of 5.0p per ordinary share.Year-end net debt rose to £86.8m from £81.2m the year before with a cash inflow from operations of £39.3m, offset by investment in capital expenditure and restructuring projects, and tax, interest and payments to shareholders.McBride said: "We have made a good start to the new financial year with trading in line with expectations."CJ