(Reuters) - Cleaning products maker McBride Plc (MCB.L) on Tuesday forecast annual adjusted profit 15% below market expectations, citing weakness in Britain and revenue loss from its decision to stop making aerosol products in the country.
Shares of the company were trading down 17.5% in early trading.
McBride said revenue from its household products unit fell 1.4% in the six months, ended Dec. 31.
First-half UK revenues were 8% lower year-on-year, reflecting weakness in products which are for sale under retailers’ own brands, often referred to as private labels.
McBride said it expects annual household revenues to shrink nearly 2%, adding that logistics costs as a percentage of its revenues continued to increase, hurt by higher distribution costs in Germany.
After a number of years of disappointing returns, McBride appointed a new management team in 2015. However, in October, McBride appointed its new chief executive officer after its former top boss stepped down from the role following a second profit warning in 2019.
The company, which makes laundry and cleaning brands including Surcare, Limelite kitchen and Clean ‘n Fresh, said it has initiated a review of its strategy and operations, which it expects to report during the fourth quarter of this financial year.
Reporting by Indranil Sarkar in Bengaluru; Editing by Shailesh Kuber