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Update: McBride Publishes Half-Yearly Results

Last December, I wrote an article about private label care product manufacturer McBride ([[MCBDY]], [[MCBRF]]). In the article, I stated that the company was positioned to benefit from margin improvements facilitated both by its cost reduction programs and lower oil price-related raw material costs. Even when combined with continuing sales declines in its most important markets, this cost deflation effect held strong potential for driving much higher profits going forward, because McBride had an exceptionally low adjusted net margin of 1.3% during FY2014. Now that the company has published its full earnings report for the first half of 2015, it's possible to get some insight into whether or not this thesis is working out as predicted.

On a reported basis, the company's revenue decline continued, with -4.1% lower sales during H1. This was mostly the result of the euro depreciating versus the pound, while at constant currency, revenues grew by… Read More …