McBride shares leap on bullish earnings outlook

27 February 2024, 08:34

Cleaning Tap
McBride financials. Picture: PA

The cleaning products group said it expects full-year profits to be between 10% and 15% ahead of its previous internal forecasts.

Household cleaning products firm McBride has said annual earnings are set to beat its forecasts after returning to a half-year profit as cost-conscious shoppers switch to retailer own-brands.

The group, which is behind many supermarkets’ own-brand cleaning products, saw shares soar by as much as 21% at one stage after upbeat results revealing it swung to a pre-tax profit of £17.4 million for the six months to December 31 against losses of £20 million a year earlier.

It saw revenues jump 9.8% to £468 million over the year as it said consumers continued to shift towards cheaper, private label products in the face of cost-of-living pressures.

McBride has been hiking prices to offset its own surging cost inflation, which helped bolster profit margins over the first half.

The Manchester-based firm, which also makes its own label products such as Oven Pride, said it expects full-year profits to be between 10% and 15% ahead of its previous internal forecasts.

Shares leaped 21% higher on opening in Tuesday morning trading.

McBride said: “The early part of the second half of the financial year has seen demand levels continue in line with trends seen in the first six months, and the group expects to see the favourable trends for private label markets continue throughout 2024.”

The group added that recent contract wins would boost sales further.

It said raw material costs remained “relatively stable” in the first half but cautioned over ongoing cost pressures.

“The rampant inflation seen in recent years is not expected to return at this stage, therefore the group expects input costs to remain stable for the coming period,” according to McBride.

But it said cost pressures remain from “employment, general supplies, energy and financing costs”, while “geopolitical tensions could present further inflationary and supply chain risks”.

By Press Association