Shares of Manchester-based household products firm McBride rose about 10% after it published a strong trading update ahead of its Annual General Meeting.

Amid a consumer shift to less expensive private label products, McBride shares have soared almost 180% so far this year.

“Our trading update on 19 October 2023 outlined that despite upward pressures in non-material costs, stronger than expected sales volumes and relatively stable raw material and packaging material costs meant that the group traded ahead of its internal forecasts for the first quarter,” said McBride.

“The group has continued to trade ahead of our expectations in October and the early part of November, mostly a result of the continuing consumer shift to value driving strong demand for our high-quality private label products from our retail partners.

“For the first four months of the current financial year, overall volumes were 8.2% higher compared to prior year, with private label volumes growing 11.7%.

“Net debt reduction is progressing well and at our half year of 31 December 2023 we expect to be fully compliant with debt cover and interest cover banking covenants, some nine months ahead of when testing recommences in September 2024.

“By our year end of 30 June 2024, we anticipate net debt / adjusted EBITDA will be close to 2x.

“With only four months of the financial year complete, the group remains alert to the possible risk to full year results from world events which could lead to macro-economic instability and potential increased volatility in commodity markets and ultimately into further input cost pressures.”