Cleaning products maker McBride Plc reported a 17.8% slump in annual profit on Tuesday, due to rising raw material costs as the company kept its 2022 outlook unchanged after issuing a profit warning last month.
The London-based company, which sells more than 1 billion products each year and usually dispatches more than 350 trucks from its factories every day, last month warned that 'exceptional price increases' in raw materials and a lack of lorry drivers would push its 2022 profits down by as much as 65%.
McBride said the effect of higher input costs was broadly in line overall with its most recent estimates, with some easing in some packaging items but increases in various chemicals.
It currently expects about £10 million of cost savings in the current year to help it deal with the costs.
The company is making efforts to tackle the surging input costs by implementing price increases and recover its margins that way. However, last month it had flagged that these increases would take effect later than they had expected.
The company, which makes and distributes its own private labels including Oven Pride and Surcare, reported adjusted pretax profit of £19.9 million ($27.52 million) for the full-year ended 30 June, compared with £24.2 million a year earlier.
News by Reuters edited by Donna Ahern, Checkout. For more A Brands stories click here. Click subscribe to sign up for the Checkout print edition.