UK's McBride full-year revenue rises 0.8%, as profit falls
UK's McBride full-year revenue rises 0.8%, as profit falls
Overview
UK cleaning products maker's preliminary full-yr revenue rose 0.8% amid inflationary pressures
Profits declined yr/yr as Q4 margin recovery lagged following Middle East crisis
Company completed Eurotab acquisition and announced Vestacy partnership, both expected to boost future growth
Outlook
Company expects first-quarter margin lag, with improvement during second quarter, subject to materials pricing
Cost environment remains difficult to predict; further price rises increasingly likely due to geopolitical tensions
Volumes in early new financial year in line with expectations; some regions show early signs of stronger growth
Result Drivers
INPUT COSTS - Geopolitical tensions in the Middle East led to higher raw material and logistics costs, impacting margins in Q4
PRICE RECOVERY LAG - Timing lag between input cost increases and price implementation concentrated margin impact in Q4
PRIVATE LABEL DEMAND - Marginal growth in private label volumes helped offset weaker contract manufacturing demand
Company press release: ID:nRSO7268Ua
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue |
| GBP 934.20 mln |
|
FY Adjusted EBIT |
| GBP 59 mln |
|
FY Adjusted Pretax Profit |
| GBP 48.80 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the household products peer group is "buy."
Wall Street's median 12-month price target for McBride PLC is GBp200.00, about 4.2% above its September 14 closing price of GBp192.00
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)