Packaging company Macfarlane Group PLC (MACF.L) Tuesday reported lower profit in its first quarter, despite growth in sales. Further, the company maintained its expectations for the full year.
Further, the company said it will commence a share buyback programme of up to 4 million pounds. The company will announce details separately this week.
In its trading update covering 2025 to date, ahead of today's Annual General Meeting, the company noted that its first-quarter profit was behind the same period in 2024. The weak results reflected lower gross margins, duplicate costs related to the consolidation of East Midlands operations, and increased property costs and acquisition related costs.
Sales were 14.2% ahead of last year with the benefit of acquisitions, signs of organic growth momentum in Distribution and a strong performance from our Manufacturing Operations.
The company anticipates its performance to improve in the second half as it completes the East Midlands site consolidation, build on organic growth momentum in Distribution, continue progress on new business, maintain the strong performance of Manufacturing Operations, and implement the benefits from Pitreavie synergies.
The firm is also taking actions to mitigate the impact of increases in National Insurance and National Minimum Wage which took effect from 1 April 2025.
Looking ahead, Aleen Gulvanessian, Chair, said, "Market conditions continue to be challenging, and global economic uncertainty is impacting the behaviour of some customers. However, the Group sees positive momentum in several areas, and we have a clear action plan for the remainder of the year which will enable Macfarlane to continue its progress."
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