McBride H1 revenues rose 31.8% to £426m

Manchester-based household products firm McBride said its group revenues rose 31.8% to £426.3 million in the six months ended December 31, 2022, and adjusted loss before taxation narrowed to £7.9 million.

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.

In its outlook, McBride said: “The early part of the second half year has continued the momentum seen in the first half and our current expectations are for a stronger operating margin performance and hence a return to adjusted operating profit in the second half of the year.

“This is driven by the impact of the margin management actions implemented and in progress, steadying cost inflation and a favourable retail environment for private label products. Our full-year expectations remain on track.

Medium term, the group will continue its strategic plans to grow shareholder value through its focus on delivering growth and cost efficiency benefits.

“Our growth ambitions are making good progress with new wins launching through 2023 and further innovative, consumer-insight led and new, eco-friendly product opportunities in the pipeline.

“The transformation programme is being launched at present, targeting £50 million of benefits over five years.

Whilst positive about the outlook, we also remain vigilant as to the potential impacts of the ongoing and significant macroeconomic uncertainty, particularly around energy costs, high general inflation levels and the knock-on impacts of any escalation of the Ukraine conflict.”

McBride CEO Chris Smith said: “The first half year required continued high levels of attention to margin recovery in light of ongoing inflationary pressures.

“Whilst there are some early signs of stabilisation in certain input costs, many raw material costs remain historically high.

“Energy and employment costs continue to apply further inflationary pressure, and accordingly, we continue to action mitigations including price increases, product engineering and cost control.

It is pleasing to have returned to positive adjusted operating profit in the last two months of the period, with momentum improving into the second half as a result of higher volumes from new business wins, better customer service levels and pricing actions fully annualising.

“All of this is supported by consumer behaviour creating a more favourable environment for private label products.”