Manchester-based household products firm McBride plc announced its revenue slipped 0.6% to £678.3 million in the year to June 30, 2022, and it made an adjusted loss before tax of £29.6 million compared to a profit of £19.9 million in the prior year.
McBride said the year was “dominated by rampant and significant cost inflation, primarily raw materials but also supply chain and logistics costs.”
However, the firm said volumes are showing some early signs of recovery in the early months of the new financial year.
McBride is one of Europe’s largest manufacturers and suppliers of private label and contract manufactured products for the domestic household and professional cleaning and hygiene markets.
McBride’s biggest shareholder is activist hedge fund Teleios Capital Partners with about 24%. Duke University Management Company (DUMAC) owns about 17% and Zama Capital Advisors owns 12%.
On current trading and outlook, McBride said: “The early months of the new financial year have seen trading in line with our internal plans.
“Volumes are showing some early signs of recovery against a backdrop of an environment that should favour private label products.
“This together with an improving service performance provides reassurance both on our revenue outlook and factory loading levels.
“Recent months have seen overall raw material costs steadying but with widely varying trends between material groups.
“Energy and currency variations add further uncertainty to the cost environment and hence margin improvement actions from price rises or product engineering remain key activities.
“At this stage the group is maintaining its view that full-year earnings will be in line with our expectations.”
McBride CEO Chris Smith said: “The group has experienced an exceptional set of challenges this last year, with rampant and unpredictable inflation, supply chain disruptions, residual Covid-19 impacts, staff shortages and weak demand levels.
“The McBride team has worked tirelessly at the various mitigations in a very uncertain and difficult environment for the group and its customers.
“As we start the new financial year, our trading performance is improving, market dynamics are favouring private label and, with the support of our lenders, we have a reset funding arrangement to provide a clear runway for the group to pursue its strategic objectives.”