REG - McBride PLC - Full year trading update

McBrideAnnouncement

14/07/2023 07:00

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RNS Number : 9800F  McBride PLC  14 July 2023

14 July 2023

McBride plc

 

Full year trading update

 

 

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 for the twelve months ended 30 June 2023.

 

The Group is pleased to confirm that its full year results will report a
return to profitability following the exceptional input cost inflation of the
past two years, driven first by post Covid-19 supply chain disruptions and
more recently by the associated economic and inflationary impacts of the war
in Ukraine.

 

Volumes were up 5.4% for the full year, following 12.7% growth in the fourth
quarter.  The improvement in demand for our products has been driven by a
combination of business wins and strong demand increases on existing
contracts.  Across most markets it is evident that there is a shift to
private label as a result of consumers' growing preference for better value,
high quality, private label products as they seek to mitigate the effects of
inflation on their household budgets.

 

Overall revenues for the full year, reflecting both volume increases and
pricing actions, will show growth of 28.4% on a constant currency basis
compared to the year to 30 June 2022.

 

As a result of the strong fourth quarter trading performance, the Group now
anticipates that adjusted operating profit will be materially ahead of current
market expectations* and at the top end of the range indicated at the time of
our trading statement on 24 April 2023**.

 

Sustainable working capital improvements resulted in Net Debt closing at
£166.5m, better than expectations, and the Group's liquidity at £59.3m,
significantly higher than the minimum liquidity requirement of £15m
applicable under the Group's financing arrangements.

 

Our full year results will be announced on 19 September 2023.

 

 

 

* Current market expectations refer to a Group compiled consensus of broker
forecasts for FY23 of:

·      Adjusted Operating Profit £9.7m

·      Net Debt (incl. IFRS 16) £181.0m

 

** Guidance provided in trading update statement issued 24 April 2023:

·      Adjusted Operating Profit £8m to £13m

·      Net Debt £181m to £186m

 

 

 

For further information, please contact:

 

 McBride plc                               0161 203 7570
 Chris Smith, Chief Executive Officer
 Mark Strickland, Chief Financial Officer

 FTI Consulting LLP                        020 3727 1017
 Ed Bridges, Nick Hasell

 

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