The Glasgow-headquartered packaging group has updated on trading in the ten months to the end of October.
Sales are down 4% year-on-year in the face of weaker volumes and lower pricing that is “impacting more sectors”.
Macfarlane said the National Insurance and National Minimum Wage increases announced in last month’s Budget last month would increase its costs by around £1.5m annually from April 2025.
“Mitigation actions are currently being reviewed to minimise the impact,” Macfarlane stated.
The group also reported improved new business performance, effective management of costs and pricing, and said the two businesses acquired this year – Polyformes and Allpack Packaging Supplies – were both performing well.
Its board expects performance for 2024 will be broadly in line with its full year expectations.
Chair Aleen Gulvanessian commented: “As outlined in our interim results, the management team is responding effectively to the market headwinds.
“Our strong balance sheet gives us confidence we can continue to execute accretive acquisitions. There is good new business momentum as customers increasingly recognise the added value we can offer both on an environmental and cost savings basis.
She said the business remained well-positioned to benefit when the macro-economic outlook improves.
Macfarlane shares initially slipped to a 52-week low of 100.75p on the news but had recovered to 104.52p at the time of writing (52-week high: 147.50p).
