February 21, 2019 / 8:11 AM / 3 months ago

UPDATE 1-Cleaning products maker McBride sees no-deal Brexit headaches

(Adds details on Brexit, analyst comment)

Feb 21 (Reuters) - McBride Plc warned on Thursday that a disorderly exit by Britain from the European Union could raise costs on imported raw materials and goods, bring on more regulatory requirements and prevent seamless travels for its employees.

The statement comes a day after the cleaning products maker cited higher distribution costs to forecast that full-year adjusted pretax profit would be about 1-15 percent lower than the previous year.

McBride is the latest to join a clutch of companies to warn that a disorderly exit from the European Union could disrupt imports of critical materials. A Brexit-spurred slide in sterling has also forced Britons to tighten their purse strings.

Against this backdrop, the provider of household goods said it was reviewing the impact of regulatory changes on chemicals and finished products, but has not unusually hedged foreign exchange or interest rate risk in a no-deal Brexit scenario.

The company, which makes cleaning brands including Surcare, Limelite kitchen and Clean ‘n Fresh, said the UK represents about 30 percent of its revenue.

“There are certain specific product ranges imported to the UK from the EU that would be impacted with cross-border movement and the Group is making limited contingency arrangements,” it said.

McBride, which has struggled to cut raw material and logistics costs, also said it was talking to its UK-based EU colleagues about their professional status in the future.

“Brexit uncertainty is not helpful, but there is useful disclosure here and the risks look to be well-managed and mitigated,” Jefferies analyst Martin Deboo said.

Reporting by Karina Dsouza and Noor Zainab Hussain in Bengaluru; Editing by Arun Koyyur

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below