McBride lifts FY operating profit outlook

30th Apr 2024 07:59

(Sharecast News) - McBride upgraded its full-year operating profit outlook on Tuesday following better-than-expected trading in the last two months.

The maker of own-brand household products said a strong operational performance and continued high demand for its private label products has meant that group trading in March and April has been ahead of its expectations.

For the first nine months of the year, overall volumes were up 6.5% on same period a year earlier, with private label volumes up 9.7%. Group revenue grew 8.2% at constant currency, benefitting from volume growth and the impact of pricing actions in the last year to recover input cost inflation.

McBride said input costs for chemicals and packaging remain similar to in its last update in February, with employment, general supplies and financing costs continuing to apply inflationary pressures.

The company pointed to early signals that certain materials will see price rises as we head into the second half of the year, mainly in the more sustainable materials categories. In addition, McBride said it continues to monitor and manage potential supply chain risks caused by "heightened geopolitical tensions".

"As a result of continuing strong trading performance, the group now anticipates that adjusted operating profit will be circa 10% ahead of current market expectations and that net debt/adjusted EBITDA will be close to 1.6x by 30 June 2024," it said.

Consensus expectations are for adjusted operating profit of £61m and net debt of £132m.