McBride to stop selling unprofitable products

7th Jul 2011 07:55

McBride, the maker of household and personal products for supermarkets to sell under their own names, is to stop selling products that are now unprofitable due to rising raw material costs.McBride said in April that escalation in commodity prices was likely to push up costs in the following months. It said today that raw material costs have since "evolved as expected", despite volatility in the quarter to June 30."Our initiatives to recover these increases are continuing, but where this is not possible in the current weak trading environment, we are exiting non-profitable business," the firm said. "A further update will be provided at the time of the group's preliminary results announcement."McBride, whose products include Tesco shaving gel and Asda dishwasher tablets, expects to post a profit in line with expectations for the year to 30 June. Revenues are expected to be up by 1% from the previous year "driven by growth in Central and Eastern Europe, and by acquisitions, which have offset the impact of difficult trading conditions in UK."---RG