Cleaning products maker McBride expects adjusted operating profit in line with market expectations in 2024, following 'strong financial and operational performance' in its financial year 2023.
The Oven Pride maker's revenue for the full year 2023 was 6.2% higher on a constant currency basis, and 5.2% higher at reported rates, the company said in a trading update.
The company's performance was driven by strong volumes, with overall sales volumes up 5.7% and private label volumes up 7.2%.
The increase in demand for products was due to a combination of business wins and strong demand increases on existing private label contracts, McBride added.
Annual Highlights
In the second half of its 2023 financial year, McBride's contract manufacturing volumes saw double-digit growth of 13.4%, driven by fourth-quarter volumes from the commencement of a new long-term contract.
The company reported a £35.0 million (€41.6 million) reduction in debt to £131.5 million (€156.4 million) from £166.5 million (€198 million) on 30 June 2023.
The group's closing liquidity of £98.3 million (€116.9 million) (31 December 2023: £85.0 million) continues to improve and is significantly higher than the minimum liquidity requirement of £15.0 million (€17.8 million) applicable under the group's financing arrangements.
McBride will announce full-year results on 17 September 2024.
Resilient Demand
In February of this year, the British cleaning products maker raised its profit expectations for FY2023 on the back of resilient demand for private-label products and new contract wins.
At the time, the London-listed owner of brands like Clean N Fresh and Oven Pride said it benefitted from price-conscious consumers shifting to private-label products, but geopolitical unrest could create further inflationary and supply chain risks.
McBride posted an adjusted operating profit of £30.5 million (€35.79 million) for the half-year, compared with a loss of £1.3 million (€1.52 million) in the same period last year.
