Manchester’s McBride ahead of market expectations

Manchester-based household products firm McBride said on Tuesday it anticipates that its full-year adjusted operating profit will be 10% ahead of current market expectations.

The company-compiled consensus of broker forecasts for FY24 are for adjusted operating profit of £61 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 a trading update, McBride said: “Strong operational performance combined with continued high demand levels for our high-quality private label products has meant group trading in March and April has been ahead of our expectations.

For the first nine months of the current financial year, overall volumes were 6.5% higher than the prior year, with private label volumes growing by 9.7%. 

“Group revenue was 8.2% higher than the prior year on a constant currency basis, benefitting from both volume growth and the impact of pricing actions in the last financial year to recover input cost inflation.

Input costs for chemicals and packaging remain at similar levels as at our last update in February 2024, with employment, general supplies and financing costs continuing to apply inflationary pressures.

“There are early signals that certain materials will see price rises as we progress into the second half of 2024, primarily in the more sustainable materials categories.

“Additionally, the group continues to monitor and manage potential supply chain risks caused by heightened geopolitical tensions.

As a result of continuing strong trading performance, the group now anticipates that adjusted operating profit will be c.10% ahead of current market expectations and that net debt / adjusted EBITDA will be close to 1.6x by 30 June 2024.

The group plans to issue a full year trading update on 16 July 2024.”

Group-compiled consensus of broker forecasts for FY24 are for adjusted operating profit of £61 million and net debt £132 million.