London: McBride, Europe’s biggest maker of retailer own-brand cleaning products, said it faced rising raw material costs and weak retail markets as it met forecasts with a 24% fall in first-half operating profit.
The British firm, which supplies firms like Tesco and Carrefour with own-label goods ranging from dishwasher tablets to deodorant, said on Tuesdayraw material costs could rise a further 7 million pounds ($11.3 million) in its second half.
Operating profit before goodwill and one-off items fell to 20.2 million pounds in the six months ended 31 December, due largely to a lag in recovering previous increases in input costs.
“Recovery of 2010 material cost increases continues to be implemented, but more recent commodity market price increases are already feeding into our material costs,” McBride said, adding the retail environment was particularly tough in Britain.
The interim dividend was kept at 2 pence a share.