British cleaning products maker McBride said it was seeing some early signs of recovery in its volumes following a tough year, as it deals with rising input costs and supply chain snags.
Manufacturers in the UK are battling higher costs and a fall in customer spending amid decades-high inflation.
McBride said total costs for its entire range of raw materials and packaging rose by 51% between December 2020 and June 2022.
The company said that while its volumes were lower in the full year ended 30 June, they were in line with its plans in the early months of the current fiscal year.
McBride reported an annual adjusted loss before tax of £29.6 million ($32.18 million), compared with a profit of £19.9 million a year earlier.
'Exceptional Set Of Challenges'
Chris Smith, chief executive officer, commented, "The Group has experienced an exceptional set of challenges this last year, with rampant and unpredictable inflation, supply chain disruptions, residual COVID-19 impacts, staff shortages and weak demand levels. The McBride team has worked tirelessly at the various mitigations in a very uncertain and difficult environment for the group and its customers.
"As we start the new financial year, our trading performance is improving, market dynamics are favouring private label and, with the support of our lenders, we have a reset funding arrangement to provide a clear runway for the group to pursue its strategic objectives."
The company also said it got a debt waiver extension until September 2024.
The Oven Pride maker said the agreement with the lender was revised to reduce the liquidity limit to £15 million ($16 million) from the £40 million restriction in place earlier, in exchange for a security package over the company's assets and investments.
News by Reuters, additional reporting by ESM – your source for the latest private-label news. Click subscribe to sign up to ESM: European Supermarket Magazine.
