Own-label player McBride has continued to build on its improved financial performance in recent years as consumer demand for private label remained strong.
Full-year profits are expected to be in line with analysts’ forecasts and the prior two years, the group said this morning in the trading update for the six months to 31 December.
First-half adjusted operating profits will be slightly behind the same period a year ago as the business went up against tough comparatives, but McBride expected the second half to be favourable thanks to a pipeline of business wins set to be launched in the next six months.
McBride, which is a supplier of own-label and co-manufactured cleaning and hygiene products for the domestic and professional markets, said the new wins would provide a solid foundation for profit growth in the 2027 and 2028 financial years.
Group revenues were 0.8% higher in the first half year on year, with volumes up 0.4%.
“Overall demand for private-label products remains strong, with private-label household share of the top five markets remaining at recent highs,” McBride added in the update.
“Profitability levels have been maintained through a combination of product engineering, operational improvements and overhead cost control.”
Analysts at house broker Peel Hunt said: “This is another good update, reflecting both a more consistent business and a management team well on top of its numbers.
“Since 2021, private-label share has increased by c400bps to c35%, as consumers have offset the rise in the cost of living. This now looks to have stabilised, and McBride is demonstrating a more consistent performance as a result. In our view, the group remains well positioned to take further share, continues to win new contracted business, and is actively evaluating inorganic opportunities to support long-term growth.”
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