McBride PLC (LON:MCB) said revenues in the first few months of the current financial year have been “satisfactory” after a worse-than-expected performance in 2018.
The consumer goods company reported a 5.4% drop in adjusted pre-tax profit from continuing operations to £33.2mln in the year to 30 June 2018, reflecting restructuring and acquisition costs.
READ: McBride issues profit warning, sells European personal care liquids business
Revenue gained 9% to £689.8mln, buoyed by the acquisition of Denmark-based dishwashing and laundry products firm Danlind. McBride announced last September that it had agreed to buy Danlind for £10.8mln plus the assumption of £28mln of net debt.
The group ended the year with net debt of £114.3mln, up from £75.7mln last year, largely due to the acquisition.
Operating margins dipped 1.8 percentage points to 4.6%, due to higher input costs and wages.
The results excluded the skincare business in the Czech Republic and the European personal care liquids unit, which are being sold as part of a major restructuring to revive McBride following poor performance.
Total operations, including the discontinued businesses, generated a 7.1% increase in revenue to £755.0mln and a 7.1% decline in adjusted pre-tax profit.
McBride tackles tough competition and struggles in personal care and aerosols unit
McBride said prices were broadly flat across the business as it tackled tough competition.
Ahead of the earnings, McBride had issued two profit warnings for the year after struggles in the personal care and aerosols division.
Sales in the personal care and aerosols unit fell 7% in 2018.
Full year guidance maintained
In the full year results statement, chief executive Rik De Vos said: "Whilst our trading performance in the year ended slightly behind our early expectations, we have continued to outperform our sector both financially and operationally in what has been a particularly challenging environment. Against this backdrop I am pleased that our teams have made such excellent progress in the execution of our strategy.”
He added: “Revenues in the first few months of the new financial year have been satisfactory and whilst certain cost pressures persist, at this stage the board remains confident the group will achieve its full year expectations."
The company maintained its full-year dividend at 4.3p.
Shares rose 1.1% to 131.8p in morning trading.