McBride anticipates its annual profit will surpass estimates as the company experiences a reduction in cost pressures
McBride, a manufacturer of household cleaning products, has announced that it predicts its full-year adjusted operating profit to exceed current market expectations. This positive outlook is attributed to the company benefiting from higher prices and a reduction in cost pressures.
McBride has observed a stabilization in some input costs as inflation has eased in recent times.
The company is pleased to confirm that its full-year results will reflect a return to profitability, marking a recovery from the exceptional input cost inflation experienced over the past two years.
This inflation was initially caused by supply chain disruptions following the COVID-19 pandemic and more recently by the economic and inflationary impacts related to the conflict in Ukraine, as stated in McBride’s statement.
McBride has faced challenges with increasing costs over the past few years, primarily due to disruptions in the supply chain caused by the COVID-19 pandemic and the Russia-Ukraine conflict.
Analysts’ estimates suggest that the company’s adjusted operating profit for the full year is expected to reach around £9.7 million (€11.33 million), based on company-compiled estimates.
In a statement, McBride mentioned that its overall revenue for the fiscal year ending on June 30 will demonstrate growth of 28.4%. This growth is attributed to both higher volumes and pricing actions implemented by the company.
McBride has observed an improvement in demand for its products, which has been influenced by a combination of securing new contracts and experiencing significant demand growth on existing contracts.
The company noted that in various markets, there is a noticeable shift towards private label products. This shift is driven by consumers’ increasing preference for private label offerings, as they prioritize better value and high-quality products. This trend is a response to the impact of inflation on household budgets, as consumers seek ways to manage their expenses effectively.