McBride expects half year finances to be slightly ahead of expectations

McBride, the Manchester-based cleaning products manufacturer, said adjusted operating profits in the six months to December 31, 2023, are expected to be slightly ahead of its expectations.

Last November, McBride warned of its potential exposure to world events that could lead to input cost pressures.

But it said today that group revenue was 9.9% higher than the prior year on a constant currency basis, benefiting from both volume growth and the impact of pricing actions in the last financial year to recover input cost inflation.

Overall volumes in the period were 6.4% higher, driven by continuing momentum in private label (private label volumes grew by 10.1%) as consumers continue to mitigate cost of living pressures.

While input costs have generally stabilised, energy, employment and financing costs continue to apply inflationary pressures. Additionally, the group continues to manage significant supply chain volatility.

The group’s focus on reducing debt and maintaining tight control of costs resulted in net debt closing the period at £145.7m (June 30, 2023: £166.5m), with liquidity at £85m (June 30, 2023: £59.3m), comfortably above the minimum requirement per the banking covenant.

McBride said it continues to anticipate that net debt/adjusted EBITDA will be close to 2x by June 30, 2024.

The group’s half year results will be announced on February 27, 2024.