McBride lifts full-year outlook, shares surge

27th Feb 2024 08:58

(Sharecast News) - McBride surged on Tuesday as the cleaning products manufacturer lifted it full-year outlook for adjusted operating profit, citing good levels of demand for retailers' own brands.

The company now expects full-year adjusted operating profit to be ahead of previous internal expectations by 10% to 15%.

It 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 it expects to see the favourable trends for private label markets continue throughout this year.

"In addition, a number of new contract wins are expected to commence during the next six months, adding further volumes," it said.

In the half-year to the end of December 2023, McBride swung to a pre-tax profit of £17.4m from a loss of £20m in the same period a year earlier, with revenue up 9.8% at £468m.

The company said the ongoing consumer and retailer shift to private label products supported further growth across the group. Total volumes grew 6.4% during the half, with private label volumes up 10.1%, taking further market share in a rising private label market.

Chief executive Chris Smith said: "McBride has continued with its positive momentum in the first half of this financial year. It is pleasing to see all five divisions continuing to grow on a constant currency basis, supporting our customers with high-quality products to meet the consumer shift to private label.

"As we progress our transformation programme, with specific initiatives to enhance McBride's capabilities and tools for the future, we remain focused on performance delivery today. This focus, together with our continued drive to reduce debt levels, will ensure McBride is well positioned to achieve further progress in the near and medium term and we look to the future with confidence."

At 0930 GMT, the shares were up 16% at 85.22p.