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Published
Jul 11, 2018
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Fish boosts Swallowfield in latest year

Published
Jul 11, 2018

Cosmetics and personal care maker Swallowfield, which also owns the Fish brand, said it has had a generally good year in the 53 weeks to June 30, despite a few challenges. Its trading was “broadly in line with expectations” and revenues will be similar to those reported in the prior year.


Fish


Its strength was driven by “strong double-digit growth” in its Brands business, although it saw a single-digit decline in its Contract Manufacturing unit. 

The company now expects group pre-tax profit for the full year to be “significantly ahead” of that reported last year, although underlying operating profit will be “marginally behind last year”.

The Brands business increased its revenues by 16% and its full-year profitability “will be significantly above both management's expectations and the prior year as a result of improving margins.” The company said the business “continues to demonstrate strong momentum and the recent acquisition of the men's hair styling brand Fish has been successfully integrated into our portfolio and is trading well.”

But what about that weaker Contract Manufacturing business? The company said the decline came against “very strong prior year comparisons” and in line with the industry, the business "has also been adversely affected by material cost inflation”. 

This, combined with a slower than anticipated start-up of three major new contracts, resulted in significantly reduced operating margins. But it's taking action to mitigate the material cost increases and the new contracts “are now in full production and expected to contribute positively to future growth.”

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