16 November 2022

McBride plc

AGM Trading Update

Trading in line with our expectations

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 ahead of its 2022 Annual General Meeting later.

In the year to date, McBride has continued to trade in-line with our expectations despite uncertainty in the political and macro-economic environment. The company is making solid progress with its strategic initiatives as identified in project compass and has significantly improved customer service levels following the appointment of a new Group Logistics Director.

The Group is focused on executing its volume and revenue plans with the combination of new wins and private label share growth overall meaning our factories remain busy, despite the overall market for Household products being lower year on year.  For the first 4 months of the year, revenues are 29% higher than the same period last year. 

Whilst the cost of most raw material groups is steadying, input costs for certain raw materials have continued to climb to all-time highs.  Strong control of our cost base has balanced these higher costs in the early part of the year such that the Group has traded in-line with our expectations.  Our funding situation has stabilised after the recent successful refinancing, with month end liquidity at an average of c.£61m in the first four months of the financial year.

Supplies of certain raw material and packaging items remain tight and additionally energy concerns as we head into the winter are driving input prices further upwards and production of certain key materials downwards.  Consequently, the Group is continuing to seek mitigations with customers either through further price increases or product engineering with the size of the required margin recovery widely varying between product families.