LONDON (Alliance News) - Personal care and beauty products maker Creightons PLC Wednesday said that profits has improved, driven by sales growth during the third quarter of its financial year, but warned that overhead costs will increase and its facing tough competition in the retail market.
The company, which owns brands including The Real Shaving Co, Pure Touch anti-bacterial handwash and Urban Therapy Twisted Sista hair products, said sales continued to grow during the third quarter, particularly on the back of recent product range launches for some of its branded products.
However, Creightons said that because of the sales growth it is seeing, it needs to expand its production capacity and will therefore invest to do so.
"This step change in costs will result in increased overhead costs whilst supporting any future growth in sales by increasing production capacity," the company said.
The company also highlighted a competitive trading environment in the retail markets.
"There is significantly increased competition in the retail market including the health and beauty sector in which we operate. This competition is resulting in increased sales volatility which makes it difficult to predict whether the sales growth achieved to date will continue," the company said in a statement.
Shares in Creightons were trading 2.2% lower at 6.11 pence mid-morning Wednesday.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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Creightons (CRL)