Own-label household and personal care manufacturer McBride has warned soaring raw material costs will hit its first half operating margin.

In a trading update for the six months to 31 December, McBride said “unprecedented” increases in the cost of raw materials had had a significant impact on the second quarter of the financial year and costs were expected to remain high in the second half.

“We are negotiating price increases with our customers and implementing measures, including restructuring, to ameliorate these costs,” McBride said. “In light of these pressures we anticipate the overall operating margin in the first half will be below the comparable period last year.”

It added: “The results for the full year will depend on the extent of any further increases in raw materials costs and the outcome of the current price negotiations with our customers.”