McBride sets foundations for recovery as losses cut
Household products manufacturer McBride has cut its annual losses and claims to have set the foundations for a ‘strong recovery’.
Top line revenue increased 31.1% to £889.0 million (2022: £678.3m) with £159.6 million as a result of price increases and £32.1 million from higher volumes.
Pre-tax losses of £15.1m represented a £20.2 million improvement on last year’s disastrous results.
The Manchester-based manufacturer and supplier of private label and contract manufactured products for the domestic household and professional cleaning and hygiene markets, published its annual results for the year to June 30, 2023, this morning (September 19).
The volume sales growth delivered an improved performance against a backdrop of a 5.5% decline in the total market for private label and branded products.
McBride delivered a 5.6% increase in total volumes, with private label volumes 7.0% higher. A further acceleration in the latter part of the second half of the financial year saw final quarter volume growth of 12.7%.
Dishwash saw the biggest growth in volumes, up 5.0%, with laundry up 2.0% and cleaners flat.
McBride saw volume growth significantly ahead of the market across the three categories, with dishwash volumes standing out at 13.0% higher in the year.
The company claimed it had returned to profitability with adjusted operating profits of £13.5m (2022: loss of £24.5m).
Chris Smith, Chief Executive Officer, commented: “The decisive actions taken in the last financial year helped set the foundations for the strong recovery achieved across the business. In combination with the hard work and dedication of our teams, McBride has delivered an impressive return to profitability and volume growth in an environment that continues to be volatile. Inflation will remain a challenge for the business into the new year, one which we believe we are better positioned to manage, driven in part by our shift to three-monthly pricing.
“The second half of the year saw encouraging momentum across the Group, underpinned by a number of new contract wins and the growing consumer shift towards private label products as cost-of-living pressures continue to impact buying behaviour. Importantly, we have continued to make good strategic progress across all divisions, with our Transformation programmes moving at pace. Overall, while the current macro environment continues to present challenges, McBride is well-positioned to deliver sustainable and profitable long-term growth.”