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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
-
8 of the best houses for sale with annexesThe best houses with annexes – from a period property in the Lake District to a 13th-century house with a two-bedroom annexe in Saltwood, Kent
-
Zelenskyy moves to appease Donald Trump – what happens now?Ukraine’s president Volodymyr Zelenskyy is conceding ground to secure the least-worst deal possible, says Emily Hohler
