Macfarlane’s 2025 profitability tumbles amid tough market

Key Highlights

• In the packaging distribution segment, revenues remained largely flat at £229.2m.
• Adjusted operating profit for the division dropped to £11.4m from £20.2m, driven by “weaker-than-expected demand”, intense trading pressure on margins, and higher labour and property-related costs.
• Despite these headwinds, the business continued to invest in strengthening its management and sales teams throughout the year.
• In the manufacturing operations segment, revenues climbed to £78.5m in 2025 from £47.5m in the prior year.
• This is driven largely by the acquisition of Polyformes in July 2024 and “stronger” demand from customers, mainly in the defence, space and aerospace sectors.