Cleaning products maker McBride has announced that it plans to raise prices for the second time in two months, as it deals with a double whammy of global supply chain pressures and a shortage of lorry drivers in the UK.
British companies have been grappling with staff shortages and higher costs as disruptions linked to Brexit and the coronavirus pandemic have severely curtailed supply chains.
In a statement to accompany its AGM, McBride, which produces both branded and private label products, warned raw material and packaging costs have risen faster and to a higher level than previously expected as global supply chains tighten further.
A shortage of haulage capacity and higher fuel expenses have inflated distribution costs and show no sign of abating in the near term, McBride added.
'Substantial Price Increases'
McBride, which has already forecast a 65% drop in full-year profit, said it has 'begun to seek a second round of substantial price increases from all its customers across all divisions, which, dependent upon specific mix, could result in a minimum of mid to high teen percentage increases'.
The group added that its manufacturing and logistics activities have 'operated well' in the year to date, and have shown 'strong resilience' despite the ongoing supply chain disruption.
It said that coronavirus restrictions at its Asia operations have now been lifted, while its new facility in Malaysia is 'ramping up production'.
Financial Year Expectations
On the coming financial year, McBride added that it expects earnings to be weighted to the second half of the year.
'Given the unpredictability of current global supply chain and ongoing uncertainty over input costs, the Board is unable to update the full year outlook it provided in its preliminary results on 9 September 2021,' it said.