Challenging Times, but Macfarlane Put in a Strong Performance

Macfarlane Group seems to be performing well in spite of challenges in raw material increases and demand. In its interim management statement, the company has stated that sales from the manufacturing operation are 4% up on the same period last year, with both packaging and label manufacturing in profit, however, packaging manufacturing has experienced delays in raw material price increases. In overall terms, profit before exceptional items in the manufacturing operations division is a little below that of 2010.

In packaging distribution, sales were up 8% from last year – resulting from a 2% growth along with 6% price recovery.

It has been reported that Macfarlane Group finance director John Love said “The good thing is that we are seeing small volume price increases. We’ve also had new business wins. We are expanding into new markets but focus on areas that mirror our activities as well.”

Macfarlane has struggled to fully pass on supplier price increases to existing customers, however, overhead costs as a percentage of sales continue to fall, and profit before exceptional items is up significantly from last year.

It’s been reported that Macfarlane Group chairman Archie Hunter said: “Demand and raw material pricing continue to be challenging. However, our priorities are to maintain sales growth momentum and restore margins while maintaining tight cost control.”

Posted Date: 23rd Nov 2011