UK's Macfarlane Group H1 revenue rises 2%, profit slips
UK's Macfarlane Group H1 revenue rises 2%, profit slips
Overview
UK packaging supplier's H1 2026 revenue rose 2% yr/yr, adjusted operating profit fell 3%
Company to launch new £6 mln share buyback in October after completing prior programme
Full-year outlook in line with market expectations; profit recovery programme progressing
Outlook
Performance in H2 2026 expected to benefit from new business growth and cost controls
Company continues to monitor and manage risks from events in the Middle East
Result Drivers
NEW BUSINESS & PRICE INFLATION - Packaging Distribution revenue growth driven by improved new business performance and price increases to recover higher input costs
PITREAVIE IMPACT - Adjusted operating profit reduced due to Pitreavie business performance, which faced capacity restrictions and higher outsourcing costs before new equipment was installed
INPUT COST PRESSURES - Manufacturing Operations margins declined due to rising input costs, despite higher revenue from defence and electronics customers
Company press release: ID:nRSa3101Sa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 148.89 mln |
|
H1 Net Income |
| GBP 3.47 mln |
|
H1 Adjusted Operating Profit |
| GBP 9.50 mln |
|
H1 Operating Profit |
| GBP 7.06 mln |
|
H1 Pretax Profit |
| GBP 4.71 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the non-paper containers & packaging peer group is "buy"
Wall Street's median 12-month price target for Macfarlane Group PLC is GBp91.00, about 22.3% above its August 26 closing price of GBp74.40
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago
Reuters Recommended Reads
Aug 27 - Industrial packaging supplier Ringmetall H1 revenue rises on Liner business unit strength, lifts 2026 outlook
Aug 26 - Swedish envelope maker Bong's Q2 loss widens on higher paper, energy costs
Aug 24 - Plastics mold maker TK Group's H1 profit drops on new project ramp-up
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)