Annual profits at McBride have fallen as the own-label cleaning products manufacturer battled major volatility and cost pressures in the aftermath of the war in the Middle East.
The group warned it expected further uncertainty around costs as the new financial year got underway.
Revenues nudged 0.8% higher to £934.2m in the year to 30 June as private-label volume growth of 0.4% offset softer demand in contract manufacturing.
Adjusted EBITDA slipped by 5.8% to £80m, while pre-tax profits were 9.1% lower at £39.9m.
McBride said the reduced profit levels were mostly a result of a margin recovery lag in Q4 in passing on increased costs to customers.
CEO Chris Smith called the results “pleasing” and said it demonstrated that McBride was a “fundamentally more agile and capable business” than in the past.
“While the geopolitical crisis in the Middle East created major macroeconomic volatility and significant immediate raw material and logistics cost pressures in the second half, we remained firmly in control with prompt actions to mitigate the material cost impact we faced,” he added. “We expect further input cost uncertainty as we start the new financial year, and we continue to monitor and be ready to respond to possible further rises.
“Despite these headwinds, we have not paused our strategic momentum. Our private-label offering continues to resonate powerfully with our retail customers and value-conscious consumers, with the prospects for market growth as strong as ever against the backdrop of rising household inflation.
“The transformation programme is successfully embedding structural efficiencies across the group. Our growth prospects are further enhanced with the recently completed acquisition of Eurotab and the announcement of a new strategic contract manufacturing partnership with Vestacy. Both of these growth projects broaden our category capabilities, drive further scale and bring significant revenue and profit growth, supporting progress toward our 10% adjusted EBITDA margin ambition.”
Volumes in the early part of the new financial year are in line with expectations, with some possible early signs of stronger market growth in certain regions.
McBride said the cost environment was difficult to predict given ongoing geopolitical tensions, with further price rises increasingly likely.
“We enter 2027 with a strong balance sheet, an agile commercial model and a deep confidence in our ability to deliver sustainable growth and enhanced returns for our shareholders,” Smith added.
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