McBride says its annual pre-tax profit came in 33% lower

Written by: Wajeeh Khan
September 8, 2020
  • McBride says its annual pre-tax profit came in 33% lower.
  • The company reports a 5% decline in total annual revenue.
  • McBride appointed Chris Smith as its new CEO in June.

McBride plc (LON: MCB) said on Tuesday that its full-year profit came in 33% lower on a year over year basis, attributed to its laundry products that were not quite in demand in recent months. The company also expressed plans that its European household will be restructured into three divisions.

Shares of the company jumped about 2% in premarket trading but lost the entire gain on market open. At 65 pence per share, McBride is now more than 25% down year to date in the stock market. In late May, the stock had printed a year to date low of 57 pence a share. Trading stocks online is easier than you think. Here’s how you can buy shares online in 2020.

McBride reports a 5% decline in total annual revenue

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McBride said that its total annual revenue was 5% lower compared to the previous year. Its household segment that generates the most revenue for the company from prominent brands like Limelite Kitchen, Surcare, and Clean ‘n Fresh reported a slight decline in full-year sales. McBride had forecast in June that its adjusted annual pre-tax profit will top market consensus.

According to the cleaning products manufacturer, demand for its items like dishwashing liquids and tablets saw an increase in the fiscal second half due to the Coronavirus lockdown. Sales for its surface-cleaning products and bleach was robust in H2 as COVID-19 made customers focus more intensely on hygiene.

The hawkish performance from this segment, however, was offset by the decline in sales at its laundry business. McBride struggled with profits for years before it brought a new management team on board in 2015. The company has made two additional changes in the past ten months as well. In June, it appointed Chris Smith as its new CEO.

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McBride’s target for the next five years

For the next five years, the British manufacturer is committed to achieving the milestone of £900 million in annual revenue. In separate news from the UK, Travis Perkins also reported an 81% year over year decline in adjusted operating profit on Tuesday.

At £10.9 million, McBride’s profit before tax in the fiscal year that concluded on 30th June came in significantly lower than £16.2 million in the previous year.

At the time of writing, the London-based company has a market cap of £117.68 million and a price to earnings ratio of 45.30.