McBride is on track to hit full-year forecasts as market share for private label continues to grow ahead of all-time highs.
Revenues at the household products supplier increased 0.8% to £475.2m in the six months to 31 December, with volume growth recorded in both private label and contract manufacturing.
Overall volume growth at the group hit 0.4% in the half, with private label volumes increasing by 0.9%.
Adjusted operating profits slipped slightly year on year, by 0.5%, to £31.5m. McBride said profitability had been maintained through growth, product engineering, operational improvements and overhead cost control.
McBride added the second half of the financial year had started in line with expectations and the group predicted good momentum as a healthy pipeline of contracts wins were prepared for launch.
The company remained on track to meet full-year results in line with analysts’ expectations for adjusted operating profits of £64.7m.
“Our performance in the first half demonstrates for the third consecutive year that the group is now consistently delivering profitability levels in line with our strategic ambition,” CEO Chris Smith said.
“Our markets continue to see private label growth ensuring resilient demand for our leading, high-quality and excellent value products and expertise. During the period, we continued to deepen our customer partnerships and have secured a healthy pipeline of new contracts due to start in the second half, providing visibility and positive momentum for the rest of the year and into next year.”
Brokers at Peel Hunt said the overall market share of private label had increased by about 400 basis points to 35% since 2021.
“Further growth is not expected, but the new level is becoming more embedded,” the firm added. “McBride is demonstrating consistent performance as a result of this shift, and, in our view, the group remains well-positioned to take further share and continue to win new contract business.”
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