McBride's annual profit slumps as laundry business loses shine

(Reuters) - Cleaning products maker McBride Plc MCB.L on Tuesday posted a nearly 33% slump in annual profit, as the company dealt with a drop in demand for its laundry products, and said it would restructure its European household unit into three divisions.

McBride posted a 5% drop in total revenue as sales in its household segment, the company’s biggest revenue generator, which houses brands such as Surcare, Limelite kitchen and Clean ‘n Fresh were marginally down from last year.

“From January 2021, we will establish separately managed divisions,” Smith said, adding that the second half of 2020 saw an uptick in demand for its cleaning products such as dish-washing tablets and liquids during the COVID-19 lockdown.

McBride said demand for its bleach and surface-cleaning products increased as customers focused more on hygiene following the outbreak, but added that it was offset in part by a decline in demand for its laundry products.

After a number of years of disappointing returns, McBride appointed a new management team in 2015. In the last 10 months, the company has seen two changes at the helm, with the latest coming in the form of Chris Smith’s appointment as chief executive in June.

The company also said it is aiming to bring in annual revenue of 1 billion euros over the next five years.

The cleaning products maker posted full-year profit before tax, for the period ended June 30, of 10.9 million pounds ($14.33 million), compared with 16.2 million pounds last year.

Reporting by Aakash Jagadeesh Babu in Bengaluru, Editing by Sherry Jacob-Phillips