Macfarlane Group, the Glasgow-based packaging, design and distribution firm, said it is “taking actions to mitigate the significant inflationary impact on input prices and logistics costs caused by events in the Middle East.”

In an AGM trading statement, Macfarlane said its trading is in line with market expectations for the full year to December 31,  2026.

Macfarlane Group chair Aleen Gulvanessian said: “Following a difficult year in 2025, our main focus for 2026 has been to commence the process of profit recovery. 

“It is encouraging therefore that the Group’s performance in the first quarter of 2026 has been in line with expectations.  

“We welcome the early signs of organic revenue growth in our Distribution business, the resilience in our Manufacturing businesses and the investment in Pitreavie which will enable that business to restore profitability in 2026.

“The impact of events in the Middle East will present market challenges not anticipated at the start of the year. However, the management team is taking appropriate actions to address these challenges and achieve progress in 2026.”

Headquartered in Glasgow, Macfarlane Group employs 1,200 people at 42 sites in the UK, Ireland, Germany and the Netherlands. The firm supplies more than 20,000 customers, principally in the UK and Europe.