Continuing revenue improves comfortably for McBride
Mcbride
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16:34 01/11/24
Household, cleaning and hygiene products contract manufacturer McBride updated the market on its trading for the six months ended 31 December on Thursday, reporting that its first half continuing revenues at constant currency were 10.8% higher than the prior year.
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The London-listed firm said that excluding the benefit of first quarter revenues from Danlind, continuing underlying revenues were 6.0% higher.
Underlying household division sales were ahead 5.9%, which the board said was primarily the result of higher sales in the East and UK regions, which were up 23.4% and 10.5% respectively.
As it outlined in its recent annual general meeting trading update, the first half had seen raw material, packaging and logistics costs higher than anticipated, particularly in the second quarter.
Those had been partly mitigated by improved sales volumes and lower overheads, McBride reported.
It said the pricing outlook for many of its key raw materials had improved recently, and in the absence of that reversing significantly, the board said it expected full-year earnings to be in line with expectations, with full-year profit delivery weighted to the second half.
The sale of the European personal care liquids business was successfully completed during the second quarter, and the company said it continued to progress plans for the closure of its UK aerosols factory in the second half-year, as expected.
It added that the integration of Danlind continued, with its Danish factories transitioning onto the McBride ERP system in December.
“The group has made significant strategic progress in the first half of this financial year completing the sale of personal care liquids, integrating Danlind onto the McBride systems and managing our revenue growth,” said chief executive officer Rik De Vos.
“Margins remain our key focus at present and the recent improvement in the pricing outlook for raw materials following almost two years of significant inflation will see some recovery of the cumulative cost impact to the business.
“I remain confident that the group continues to be well positioned to exploit the growth and margin opportunities in the remainder of this financial year and beyond.”
McBride Group said it would announce its interim results for the six months ended 31 December on 21 February.