McBride expects profit to fall further

5th Jan 2012 08:34

Own brand household and personal care products supplier McBride said while revenue grew 2% in the last six months trading profit is expected to be lower than last year, in line with expectations.McBride saw profits halved in the year to end of June amid rising costs and a tough retail environment.The group, which supplies supermarket chains such as Tesco with toothpaste and detergents to sell under their own name, said raw material costs continue to evolve as anticipated and its recovery actions have been carried out as planned. McBride said exceptional charges of around £7m will be applied, following previously announced supply cost cutting initiatives.Chief executive Chris Bull commented, "Our first half performance has been satisfactory, with revenue growth achieved in the current challenging environment." Revenue grew in all three of its European divisions."Raw material prices have been stable since mid-2011 and we have completed our cost recovery plans. The consumer will increasingly look for value in these difficult times and our strategic initiatives remain fully on track."Net debt at the period end will be around £86m, in line with expectations.cj