Shares of Manchester-based household products firm McBride rose about 20% after it published a trading update saying its “favourable trading environment and momentum of the second half of FY23 has continued into the first quarter of FY24.”

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.

” … the continued effect of increases in the cost of living on consumers has meant that demand levels continue to be driven by a shift towards private label products across all markets …” said the firm.

McBride said its first quarter volumes were 8% higher overall compared to the first quarter of FY23, with private label growth of 10.8%.

The full trading statement read: “The volatile inflationary environment as described in the group’s preliminary results announcement on 19 September 2023 has continued to persist.

“While raw material and packaging material costs remain relatively stable, albeit at significantly higher levels than in previous financial years, other costs such as labour, energy and indirect cost inflation continue to be a source of upward cost pressure.

“The group also notes that world events could lead to macro-economic instability which may result in an increased risk of volatility in commodity markets and ultimately into further input cost pressures.

“However, the continued effect of increases in the cost of living on consumers has meant that demand levels continue to be driven by a shift towards private label products across all markets and as a result, the favourable trading environment and momentum of the second half of FY23 has continued into the first quarter of FY24.

“The group has continued its focus as a value adding partner with our customers as they increasingly grow their own label proposition.

“First quarter volumes were 8.0% higher overall compared to the first quarter of FY23, with private label growth of 10.8%.

“Consequently, for the first 3 months of the current financial year our business has traded c.£8m ahead of internal forecasts at an EBITA level.”