Macfarlane Group reports revenue growth amid profit decline for H1 2025

UK – Glasgow-based protective packaging leader Macfarlane Group announced its interim results for the first half of 2025, revealing a 13% increase in group revenue to US$146.6 million, up from US$129.6 million in H1 2024. 

However, adjusted operating profit fell by 22% to US$9.8 million, compared to US$12.5 million in the same period last year, due to challenging market conditions.

The company’s Distribution arm saw revenues hold steady at US$110.4 million, nearly unchanged from US$110.9 million in H1 2024. 

Its adjusted operating profit, however, dropped significantly to US$4.8 million from US$9.3 million, driven by weaker demand, delays in new business decisions, and margin pressures.

According to Aleen Gulvanessian, chair of Macfarlane Group, “Market conditions have been tough in 2025 due to economic headwinds, particularly impacting our Distribution business.”

In contrast, the Manufacturing Operations division performed strongly, with revenues rising to US$39.2 million from US$21.3 million in H1 2024. 

Adjusted operating profit in this segment grew to US$5.0 million from US$3.2 million, fueled by acquisitions of Polyformes in July 2024 and The Pitreavie Group in January 2025, alongside robust demand in the defense and aerospace sectors. 

A company statement highlighted that these acquisitions have enhanced the division’s performance.

Macfarlane reported a net cash inflow from operating activities of US$12.4 million, down from US$14.1 million in H1 2024, attributed to effective working capital management. 

The group operates within its US$40.0 million bank facility, which extends to November 2027 with options to reach November 2029. 

The interim dividend remains at US$0.96 per share, payable on October 9, 2025, and the recently launched $4 million share buyback program will proceed as planned.

Looking ahead, Macfarlane anticipates a stronger second half, driven by seasonal trading improvements and cost management strategies. 

The company expects to convert its new business pipeline and realize synergies from the Pitreavie acquisition. 

“Our sales team and customer-focused approach give us confidence in positive medium-term prospects,” Gulvanessian stated.

Recent updates indicate Macfarlane is actively pursuing further acquisitions to support growth, with a focus on cost synergies and sustainable packaging solutions. 

The company’s full-year outlook for 2025 remains in line with market expectations, despite a projected 10% decline in adjusted operating profit compared to 2024, as noted in a July trading update.

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