Problems with a new IT system that led to an eight-week backlog of orders will cost chemicals group ICI £14m this year.
The Dutch Quest division of ICI, which makes fragrances for perfume manufacturers such as Christian Dior, rolled out a new SAP enterprise resource management (ERP) system at the end of May.
The system was implemented across four Quest factories in Holland, but problems at one site meant the company was unable to locate all of its raw materials, which slowed down production and led to a build-up of orders.
In its interim results this week, ICI revealed that the production problems, combined with weak fragrance sales, have cost £4m in the three months ended 30 June.
ICI also indicated that there would be a further knock-on effect during the second half of the year.
"Quest had a disappointing quarter due to weakness in fragrance sales and production problems at a major flavour site due to systems changes," the company said in its results statement.
"Flavour production volumes have now been restored, although there will be a trading profit impact in the second half, which is currently estimated at around £10m."
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