McBride warns of first-half loss, shares slump

The maker of Oven Pride said that since it provided guidance in September, global supply chains have continued to tighten.

"Raw material and packaging costs have moved faster and to a higher level than previously expected," it said. "In addition, the shortage of haulage capacity and higher fuel costs has continued to substantially inflate distribution costs - again ahead of the board’s expectations - which show no sign of abating in the near term."

The group had already indicated that earnings for FY22 were set to be weighted to the second half of the year. However, it also said on Tuesday that it now expects to deliver a loss of up to £10m at the EBITA level for the first half.

McBride said it was unable to give an update on the full-year outlook, "given the unpredictability of current global supply chain and ongoing uncertainty over input costs". It had previously guided to profit of £8m.

The group has begun to seek a second round of substantial price increases from all its customers across all divisions, which could result in a minimum of mid to high teen percentage increases. The company said its manufacturing facilities and logistics activities have operated well in the period and have shown "strong resilience" despite all the uncertainties and supply chain disruptions.

"It is pleasing to report that coronavirus restrictions at our Asia operations have recently been lifted and our new facility in Malaysia is ramping up production," it added.

At 1220 0BST, the shares were down 7% at 64.62p.