MCBRIDE, Europe’s biggest manufacturer of retailers’ own-brand household and personal care products, yesterday announced a three per cent drop in revenue at constant currency in the last six months.
The group said its decision – announced previously – to wind down selected contract manufacturing business had hit its first half, but that private label revenue growth in central and eastern Europe has remained strong.
It also said that a poor UK market performance was due to competition from prominent branded promotional activities weighing on the results despite growth in France and Benelux.
McBride said in a statement that it hopes new product launches will help boost sales in its second half, but some analysts remained sceptical.
“We are reducing our forecasts for the current year by 25 per cent,” said Peel Hunt’s Charles Hall.
“The company will need to take action to reduce costs in the UK,” he added.
Shares in the firm, which have fallen 15 per cent since this time last year, dropped a further two per cent yesterday, closing at 100p.