Household cleaning products manufacturer McBride said it expects full-year adjusted operating profit to be ahead of current market expectations, as it benefits from higher prices and easing cost pressures.
The company has seen some input costs stabilise recently as inflation eased.
'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,' McBride said in statement.
Rising Costs
It has struggled with rising costs in the past couple of years due to COVID-19 related supply-chain disruptions and the Russia-Ukraine conflict.
Analysts, on average, expect adjusted operating profit for the full year to be £9.7 million (€11.33 million) according to company-compiled estimates.
Overall revenue for the year ended June 30 will show a growth of 28.4%, reflecting both volume increases and pricing actions, McBride said in a statement.
Shift To Private Label
'The improvement in demand for our products has been driven by a combination of business wins and strong demand increases on existing contracts,' the company said.
'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.'
Read More: McBride Says Thrifty Shoppers Helping Turn Its Fortunes
McBride will publish its full-year results on 19 September. [Additional editing by ESM]
