McBride tumbles after profit warning
By Iain Gilbert
Date: Wednesday 20 Feb 2019
(Sharecast News) - European manufacturer McBride warned investors on Wednesday that its full-year adjusted pre-tax profits would come in roughly 10-15% lower than in the year before, as it struggles to cut back on raw material and logistics expenses.
McBride now expects overall raw material pricing to improve in the second half of its trading year, but not by quite as much as it had told shareholders to expect back in early January.
"We continue to expect the overall raw material pricing outlook to show improvements in the second half, but not to the extent anticipated in early January," said McBride.
The cleaning products maker said sales were set to grow in the trading year ended 30 June, but also warned of higher-than-expected distribution costs as logistics capacity issues and service gaps pushed market rates up in the half.
"Distribution costs continue to rise beyond our previous estimates due to market rates and efficiency challenges driven by logistics capacity shortfalls and internal service gaps."
As of 1200 GMT, McBride shares had tanked 31.55% to 88.99p.
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