Manchester-based household products firm McBride said in a trading update for the 12 months ended June 30, 2024, it delivered “the expected strong financial and operational performance, building on the significant improvement achieved in financial year 2023.”
McBride said it therefore anticipates that adjusted operating profit will be in line with the recently upgraded current market expectations.
However, the company’s shares fell about 10%.
McBride said “current market expectations” refer to a group-compiled consensus of broker forecasts for FY24 of adjusted operating profit of £66.4 million and net debt of £129 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.
“Group revenue was 6.2% higher for the full year on a constant currency basis, and 5.2% higher at reported rates, primarily driven by strong volumes, with overall sales volumes up 5.7% and private label volumes up 7.2%,” said McBride.
“The improvement in demand for our products has been driven by a combination of business wins and strong demand increases on existing private label contracts.
“We continue to make encouraging progress in our strategic and focus markets, as outlined in our recent Capital Markets Day, driven by our strengthening customer partnerships.
“Additionally, contract manufacturing volumes grew 13.4% in the second half, driven by fourth quarter volumes from the commencement of a significant new long-term contract.
“The group’s improved profitability and continued focus on net debt reduction resulted in net debt closing at £131.5m, a £14.2m reduction versus the half year end (31 December 2023: £145.7m) and a £35.0m reduction versus the prior year end (30 June 2023: £166.5m).
“The group’s closing liquidity of £98.3m (31 December 2023: £85.0m) continues to improve and is significantly higher than the minimum liquidity requirement of £15.0m applicable under the group’s financing arrangements.”