Raw material price increases hit McBride

28th Apr 2011 14:22

Own label goods maker McBride has seen a small uplift in revenue (on a constant currency basis) this year, driven by growth in central and eastern Europe.Revenue in the period from 1 January to 27 April was 1% higher than in the corresponding period of last year, in line with management expectations.The material price escalation the company spoke of in February evolved as expected during the third quarter of the company's financial year, but recent further escalation in commodity prices has led McBride to anticipate that its fourth quarter material costs will be higher than expected. The company already has a number of initiatives in progress to recover raw material price increases and these will now be stepped up, but the company said the time lag, combined with the weak trading environment, is expected to result in a further reduction in trading profit this year of around £5m. "We have achieved revenue growth at constant currency at a time when, particularly in the UK, retail volumes have been very weak. The strategy review that we announced in February is on-track with the implementation of the key actions that we identified underway. We are addressing significant opportunities to deliver future shareholder value through focusing investment on growth categories and geographies, strengthening our relationships with key customers and improving our cost efficiency," said Chris Bull, McBride's chief executive.