(Sharecast News) – Shares in McBride surged on Friday after the cleaning products specialist confirmed profits would be “materially” ahead of expectations, as customers shifted to better value own label ranges.
The firm, which makes private label cleaning products for the domestic and professional markets, said fourth-quarter volumes jumped 12.7% and full-year volumes by 5.4%.
It said consumers were increasingly opting for “better value, high-quality private label products as they seek to mitigate the effects of inflation on their household budgets”. It also benefited from a number of new business wins during the year to 30 June.
McBride therefore now expects to return to profitability following the “exceptional” input cost inflation of the past two years, which was driven by supply chain issues and surging inflation.
Revenues, boosted by both higher volumes and prices, will be 28% higher year-on-year on a constant currency basis, while the operating profit will be “materially” ahead of market expectations, at the top end of guidance.
In April, McBride guided that adjusted operating profits would come in between £8m to £13m.
As at 0845 BST, shares in McBride had jumped 22% at 31.8p.
McBride will post full-year results on 19 September.
