StockMarketWire.com - Cleaning products group McBride reported a 2.8% fall in annual profit as the pandemic had a mixed impact on demand and pushed up costs.

Pre-tax profit for the year through June decreased to £10.6 million, down from £10.9 million year-on-year, as revenue slipped 4% to £682.3 million.

McBride said its results were in line with previously revised expectations.

The company had been enjoying higher demand for decontamination products due to the pandemic, but lower demand for other cleaning products thanks to to subdued economic activity.

On Tuesday, it said cleaners volumes had normalised in the second half, but laundry volumes were still light compared to historic levels.

The company also reported exceptional input cost inflation had hit in the fourth quarter, driven by Covid-19 shocks to its supply chain and rapid and exceptional inflation of key feedstocks.

McBride said it expected to achieve costs savings of £10 million in the current financial year.

'This year has been one of two halves, with a strong first half followed by a more difficult second,' chief executive Chris Smith said.

'In our recent trading update we highlighted the supply side cost inflation being felt due to rapidly increasing raw material costs and freight capacity.'

'The £10 million of savings expected in the current financial year leave us well placed to meet these challenges and our efforts to recoup input cost rises from customers continue. '

'We continue to anticipate a weak first half year, especially when compared to our strong first half last year, with profits therefore heavily weighted to the second half of the year.'




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