Shares in Creightons PLC (LSE:CRL) dropped 10% on Wednesday despite reporting a return to profitability, as investors reacted to a cautious outlook for the year ahead.
The beauty and personal care manufacturer posted a 1.6% rise in revenue to £54.1 million for the year to 31 March 2025, with strong growth in private label sales offsetting declines in branded and contract manufacturing.
Operating profit before exceptional items more than doubled to £3.5 million, while net cash rose to £3.0 million.
However, the company warned of upcoming pressures, including rising employment costs linked to higher national insurance contributions and minimum wage increases.
Creightons said it remains in a solid position to manage these risks and plans to invest in product development, marketing and global sourcing to drive future growth.
A final dividend of 0.50p was proposed, up from 0.45p last year. The cautious tone overshadowed otherwise strong financial progress.
The shares dropped 3.67p to 39.33p.