Shares of Manchester-based cleaning products firm McBride plc fell as much as 14% on Friday after it published an update on current trading conditions and progress on its proposed acquisition of Eurotop SAS, owner of the Eurotab Group.
McBride is a leading European manufacturer and supplier of private label and contract manufactured products for the domestic household and professional cleaning and hygiene markets.
“Since April, we have experienced sustained cost increases in petrochemical-derived and energy-intensive materials as a consequence of the current Middle East conflict,” said McBride
“Our price recovery actions, tied to our 3-month pricing approach, have progressed through the past weeks, working closely with our customers to secure offsetting price increases.
“The cumulative impact on input costs has exceeded our original expectations due to the continuing and prolonged period of the conflict, which has required a second phase of price recovery actions.
“Whilst the duration of this conflict remains uncertain, at this stage we are of the view that direct cost pressures are unlikely to either rise considerably further or experience meaningful near-term decline.
“Due to the standard time lag between rising input costs and price implementation, we expect the financial impact to be concentrated within our Q4 FY26 and Q1 FY27 results.
“We anticipate limiting this total exposure to less than a full 3-month cost impact.
“We expect performance to normalise and to be back on track with previous expectations for FY27 heading into Q2 FY27 and beyond. Therefore, the Group now expects FY26 and FY27 adjusted EBITA to be between 5 and 10% lower than current analysts’ expectations.
“As stated in our April update, the Group notes that following previous periods of rapid inflation, there has been resilient and growing demand for private label cleaning products because of the compelling value for money proposition for consumers as rising general inflation leads to affordability challenges.”
Analysts’ expectations refer to a group-compiled consensus for adjusted EBITA for the year ending June 30, 2026, of £64.2 million and for the year June 30, 2027, of £70.6 million.
On the Eurotab acquisition, McBride said: “The Group is pleased to announce it expects to complete the acquisition of Eurotab on or around 1 July 2026.
“This acquisition represents an attractive strategic opportunity and is expected to further reinforce the strong market position of McBride’s Unit Dosing division in the European detergent market and bring meaningful scale to the Group. A further announcement to confirm the completion will be made in early July.”