McBride “pleased” with progress of aerosols business
For the year ended 30 June 2020, McBride revealed some important updates, including introducing its new CEO, Chris Smith, who was appointed in June, and a new strategy and implementation programme, ‘Programme Compass’.
The firm’s headline aim is to profitably grow annual revenues to €1 billion in the next five years through focused divisional strategies.
In the last four months of the year, McBride reported a strong profit performance, driven by increased demand for aerosol, cleaning and dish-washing products. The firm did not report any significant production of business disruption as a result of the COVID-19 pandemic.
McBride aerosols results
As part of its annual report, McBride said its aerosols business has transitioned to a standalone operation. The company's goal over the past 12 months was to transform the division from a loss-making business into at least a break-even position, stating it was “pleasing” to see the progress it has made, with the business delivering profits above £2 million (€2.2 million).
Full-year group revenues, at over £706 million (€776 million), were 1.7% lower than the previous year at constant currency, which McBride attributes to the decision to exit UK aerosol manufacture in Q4 of the previous financial year, with a consequent effect on aerosol sales.
Overall, reported aerosols revenues were £35.2 million (€38.7 million), compared to £47.7 million (€52.4 million) the previous year, reflecting the changes outlined above. The company said that following the reset of its aerosols business, a review of the use of shared functions resulted in a higher proportion of group overhead costs being allocated from aerosols to the household segment. According to McBride, applying this principle to the FY19 result would have resulted in aerosols reporting an operating loss of circa £1 million (1.1 million).
At the end of February, before the pandemic, McBride said it was on track to achieve its ambition to bring the reset aerosols business back to at least a break-even position. In response to the increased demand for sanitising products, the aerosols team quickly developed aerosol sanitiser products which saw good sales interest over the last three months of the year.
Chris Smith, CEO, said: “The group has delivered a solid FY20 performance overall. Following a tough first half-year, demand for many of our cleaning products rose strongly as a result of COVID-19.
“I am very proud of the way the McBride team has responded to numerous challenges and opportunities that have arisen from the pandemic and the improved second-half financial performance.
“Today [8 September], McBride is announcing the initial findings of a thorough business review and the initial phase of its new ‘Compass’ strategy that targets annual revenues of €1 billion over the next five years.
“From January 2021, we will establish separately managed visions, each with their own focused strategies, and I am confident the new McBride teams will deliver on our new ambitions.”