19 October 2023
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.
The volatile inflationary environment as described in the Group's preliminary results announcement on 19 September 2023 has continued to persist. While raw material and packaging material costs remain relatively stable, albeit at significantly higher levels than in previous financial years, other costs such as labour, energy and indirect cost inflation continue to be a source of upward cost pressure.
The Group also notes that world events could lead to macro-economic instability which may result in an increased risk of volatility in commodity markets and ultimately into further input cost pressures.
However, the continued effect of increases in the cost of living on consumers has meant that demand levels continue to be driven by a shift towards private label products across all markets and as a result, the favourable trading environment and momentum of the second half of FY23 has continued into the first quarter of FY24. The Group has continued its focus as a value adding partner with our customers as they increasingly grow their own label proposition. First quarter volumes were 8.0% higher overall compared to the first quarter of FY23, with private label growth of 10.8%.
Consequently, for the first 3 months of the current financial year our business has traded c.£8m ahead of internal forecasts at an EBITA level.
The Group's next scheduled update will be our AGM statement on 20 November 2023.
For further information:
Chris Smith, Chief Executive Officer
Mark Strickland, Chief Financial Officer
0161 203 7401
0207 457 2020
Note: This announcement contains inside formation which is disclosed in accordance with the Market Abuse Regulations which came into effect on 3 July 2016.