McBride trading strongly as consumers hunt for value

Household and cleaning private label and contract manufacturer McBride said in a trading update on Monday that it continued to surpass expectations through October and early November.

The London-listed firm, holding its annual general meeting, said in an update on 19 October that its trading performance exceeded internal forecasts for the first quarter.

Despite rising non-material costs, substantial sales volumes and relatively stable raw material and packaging costs contributed to the positive outcome.

On Monday, it said its ongoing success was due to consumers seeking value, resulting in robust demand for its private-label products from retail partners.

Over the first four months of the current financial year, overall volumes were 8.2% ahead of the prior year, with private label volumes experiencing impressive growth at 11.7%.

The company said its efforts to reduce net debt were also progressing well.

As of the half-year mark on 31 December, McBride anticipated full compliance with debt and interest cover banking covenants nine months ahead of the scheduled testing resumption in September next year.

By the end of the financial year on 30 June 2024, the firm aimed to have a net debt-to-adjusted EBITDA ratio close to 2x.

“With only four months of the financial year complete, the group remains alert to the possible risk to full year results from world events which could lead to macroeconomic instability and potential increased volatility in commodity markets and ultimately into further input cost pressures,” the McBride board said.

At 0842 GMT, shares in McBride were up 5.39% at 54.7p.

Reporting by Josh White for Sharecast.com.