Household products manufacturer McBride has said that it expects its full-year profit before tax to be 15% higher than current market expectations, following high demand for its products.
In a trading update, the group said that it expects net debt for the financial year, which runs to 30 June, to be lower than previously anticipated.
Encouraging Signs
Following on from its previous trading update on 25 March, McBride said that demand levels in its Household business had 'moderated from the surge' seen in many markets at the commencement of the COVID-19 lockdown process.
However, it noted that sales 'encouragingly remain above the run-rate levels seen before March', with surface cleaning and dishwasher products performing strongest, as well as a small boost from laundry products, across its main markets.
It said that it has benefited from lower input pricing in its core markets, however this has been tempered by one-off COVID-19 related operating costs.
Operating Levels
'Our teams have worked well to address the early challenges of staff shortages, material availability and distribution blockages and all factories are currently operating at more normal activity levels,' the company said.
In addition, McBride's Aerosols business is enjoying a boost from sales of new hand sanitiser products, and this division is expected to deliver a profit improvement in the final quarter of the year, supported by investment in additional production capacity.
McBride will issue its next trading statement on 14 July, following the completion of its full-year period, while preliminary results are scheduled to be announced on 8 September.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
