Macfarlane Group lowers full-year expectations

Macfarlane Group has lowered its full-year expectations, with its operating profit set to drop by 10% year-on-year.

The packaging distribution and manufacturing operations firm said the decline in expectations reflects a "year of challenge and economic uncertainty".

Macfarlane revealed that its distribution sector is experiencing weaker than expected demand, delays in new business decision making, pressure on gross margin due to competitive environment, rising input prices and lower than anticipated recovery of labour and property-related cost increases.

However, the Glasgow-headquartered firm did add that its manufacturing operations sector was "performing robustly" with good momentum in its aerospace and defence related customers, following its acquisition of Polyformes.

These factors partially offset a slowdown in sectors where customers are being impacted by uncertainty over US tariffs.

Looking ahead at the rest of the firm’s financial year, Macfarlane said that it will focus on the recovery of cost increases, the implementation of additional cost saving actions and ensuring that it can convert the "strong new business pipeline".

Chair at McFarlane Group, Aleen Gulvanessian, said: "We highlighted in our AGM statement that market conditions in 2025 were challenging. It is disappointing that the momentum increase we experienced early in Q2 2025 has not been maintained and as a result will impact our full year performance.

"Management is focused on implementing an action plan to recover cost increases and execute against our strong pipeline of new business.

"The board remains confident that our strengthened sales team, differentiated customer proposition and proven executional skills mean that the prospects for the Group remain positive."



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