Health and beauty company McPherson's (ASX:MCP) has slashed its first half profit guidance and withdrawn full year guidance after weaker than expected sales in its Chinese joint venture Access Brands Management.
The Group’s 1H21 underlying profit before tax forecast of $10.2 million to $11.1 million to a range of $6.5 million to $7.5 million
The business says it is working together with ABM to materially improve the 2H21 outcome through further incremental promotional investments.
Access Brands Management is forecasting very strong growth of 40 per cent to 50 per cent in Dr. LeWinns sales to its reseller community in calendar year 2021.
Shares in McPherson’s (ASX:MCP) are trading 33.97 per cent lower at $1.21.