Shares of Manchester-based household products firm McBride rose as much as 17% after it raised its full year profit expectations and announced a strong first half performance underpinned by a “continued consumer shift to private label.”
For the six months ended December 31, 2023, McBride said its revenue rose 9.8% to £468 million and adjusted profit before taxation was £22.4 million compared to a loss of £7.9 million in the first half of the prior year.
The firm said its full year adjusted operating profit is now expected to be 10-15% ahead of previous internal expectations.
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 company said: “Ongoing consumer and retailer shift to high-quality private label products supported further growth across the group …
“Total volume growth of 6.4%, with private label volumes increasing by 10.1%, taking further market share in a rising private label market …”
McBride CEO Chris Smith said: “McBride has continued with its positive momentum in the first half of this financial year.
“It is pleasing to see all five divisions continuing to grow on a constant currency basis, supporting our customers with high-quality products to meet the consumer shift to private label.
“This strong performance is a result of the commitment across all the business teams to provide our customers with highest quality, best value products and the strongest innovation options in the sector.
“Our focus on operational delivery will see our second half year deliver ahead of our plan with full year adjusted operating profit now expected to be 10-15% ahead of previous internal expectations.
“As we progress our Transformation programme, with specific initiatives to enhance McBride’s capabilities and tools for the future, we remain focused on performance delivery today.
“This focus, together with our continued drive to reduce debt levels, will ensure McBride is well positioned to achieve further progress in the near and medium term and we look to the future with confidence.”