Last checked at 14 Jul 2023 07:00
14 July 2023
McBride plc
Full year trading update
McBride plc (the "Group"), the leading European manufacturer and supplier of private label and contract manufactured products for the domestic household and professional cleaning and hygiene markets, today provides the following trading update for the twelve months ended 30 June 2023.
The Group is pleased to confirm that its full year results will report a return to profitability following the exceptional input cost inflation of the past two years, driven first by post Covid-19 supply chain disruptions and more recently by the associated economic and inflationary impacts of the war in Ukraine.
Volumes were up 5.4% for the full year, following 12.7% growth in the fourth quarter. The improvement in demand for our products has been driven by a combination of business wins and strong demand increases on existing contracts. Across most markets it is evident that there is a shift to private label as a result of consumers' growing preference for better value, high quality, private label products as they seek to mitigate the effects of inflation on their household budgets.
Overall revenues for the full year, reflecting both volume increases and pricing actions, will show growth of 28.4% on a constant currency basis compared to the year to 30 June 2022.
As a result of the strong fourth quarter trading performance, the Group now anticipates that adjusted operating profit will be materially ahead of current market expectations* and at the top end of the range indicated at the time of our trading statement on 24 April 2023**.
Sustainable working capital improvements resulted in Net Debt closing at £166.5m, better than expectations, and the Group's liquidity at £59.3m, significantly higher than the minimum liquidity requirement of £15m applicable under the Group's financing arrangements.
Our full year results will be announced on 19 September 2023.
* Current market expectations refer to a Group compiled consensus of broker forecasts for FY23 of:
· Adjusted Operating Profit £9.7m
· Net Debt (incl. IFRS 16) £181.0m
** Guidance provided in trading update statement issued 24 April 2023:
· Adjusted Operating Profit £8m to £13m
· Net Debt £181m to £186m
For further information, please contact:
McBride plc | 0161 203 7570 |
Chris Smith, Chief Executive Officer | |
Mark Strickland, Chief Financial Officer | |
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FTI Consulting LLP | 020 3727 1017 |
Ed Bridges, Nick Hasell |