McBride trading ahead of expectations as customers turn to own brand goods

McBride shares surged on Thursday after the maker of own brand household goods said it had traded ahead of expectations in the first three months of the year as consumers increasingly turn to own brand products amid the cost-of-living crisis.

The company said in an update that the volatile inflationary environment described in its preliminary results last month had continued.

While raw material and packaging material costs remain relatively stable, albeit at significantly higher levels than in previous years, other costs such as labour, energy and indirect cost inflation continue to be a source of upward cost pressure, it said.

However, the ongoing cost-of-living crisis has meant "that demand levels continue to be driven by a shift towards private label products across all markets and as a result, the favourable trading environment and momentum of the second half of FY23 has continued into the first quarter of FY24," it said.

McBride said first-quarter volumes were up 8% on the same period a year earlier, with private label growth of 10.8%.

"Consequently, for the first three months of the current financial year our business has traded circa £8m ahead of internal forecasts at an EBITA level."

At 1030 BST, the shares were up 22% at 39.90p.