Macfarlane Group, a Scotland-headquartered packaging company, has experienced an 8% revenue decline in the first half (H1) of financial year 2024 (FY24), with figures falling to ￡129.59m ($170.01m) from ￡141.61m in H1 FY23.

During the six months ending 30 June 2024, Macfarlane's diluted earnings per share for the period were 4.55p, a slight reduction from 4.74p in the first half of the previous fiscal year.

The company's profit before tax also saw a decrease, dropping by 3% to ￡9.70m in H1 FY24 from ￡9.98m in H1 FY23.

Its operating profit declined by 2% to $10.60m over the first half, compared with $10.80m in the corresponding period last year while gross profit was $51.45m against $51.32m in H1 FY23.

The company’s Packaging Distribution revenue decreased by 11% to ￡110.9m in H1 FY24, down from ￡124.0m in H1 FY23.

The company attributes this decline to weak customer demand and price deflation, although the recent acquisitions of Gottlieb in April 2023 and Allpack Direct in March 2024 have provided some offsetting benefits.

The Manufacturing Operations division, however, reported a 6% revenue growth to ￡18.7m, up from ￡17.7m in the first half of the previous year.

This increase was driven by contributions from B&D Group and Suttons, both acquired in 2023, despite the challenges of price deflation.

Macfarlane Group chair Aleen Gulvanessian said: “As outlined in our AGM [annual general meeting] 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.”

Last month, Macfarlane Group announced the acquisition of UK-based protective packaging manufacturer Polyformes.

"Macfarlane Group reports 8% revenue decline in H1 FY24 " was originally created and published by Packaging Gateway, a GlobalData owned brand.

 

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