PROTECTIVE packaging specialist Macfarlane Group has posted interim financial results for the first six months of 2024, which revealed an 8% dip in revenue to £129.6 million compared with the same period 12 months earlier.
Group profit before tax reduced by 3% to £9.7 million, while group adjusted operating profit as a percentage of revenue improved from 9.1% to 9.7%.
Packaging distribution revenue decreased by 11% to £110.9 million. The business said ‘continued weak customer demand and price deflation’ have been partially offset by the benefit of the acquisitions of Gottlieb and Allpack Direct. Adjusted operating profit decreased by just 1% to £9.3 million, which was attributed to ‘effective management of input pricing and control of operating expenses’.
Manufacturing operations achieved revenue growth of 6% to £18.7 million, while adjusted operating profit decreased 5% to £3.2 million due to higher operating expenses. Macfarlane explained the acquisition of Polyformes completed in July 2024 will be earnings enhancing in the second half of this year.
Macfarlane added that the actions taken in the first six months of 2024 and continuing through the remainder of the year should enable the performance of the group to be ‘broadly in line’ with market expectations for 2024.
Aleen Gulvanessian, chair of Macfarlane Group PLC, said, “As outlined in our AGM trading update in May, the challenging market conditions experienced in the latter part of 2023 have continued in 2024. The management team has responded effectively through an improvement in new business growth, the management of price deflation and actions to control operating costs. In addition, the group continues to execute its strategy, making two further high-quality acquisitions.
“The strength of our balance sheet and the cash generative nature of our business underpins our ongoing investment in actions to grow sales both organically and through acquisition and increase the interim dividend. Despite market headwinds, our operational and strategic performance is progressing, and the group is well-positioned to benefit as the macroeconomic outlook improves.”
