British cleaning products maker McBride returned to profits in the final two months of its first half, thanks to higher prices and demand for private label products amid a cost-of-living crisis.
The Oven Pride maker, which has been struggling with mounting costs, said it expects to report a 'small' adjusted operating loss before exceptional items for the half year.
Shares of the London-listed group rose 3% in early trading.
Price Increases
The company said it was looking to offset pressure from energy, employment and raw material costs by raising prices and cutting expenditure.
Manufacturers in the UK have been battling higher costs and a fall in customer spending amid decades-high inflation.
McBride said its revenues for the half year were 31% ahead of the previous year, helped by a recovery in its volumes and a moderate easing in input costs.
The company added that its customer service levels improved significantly in the first half as a result of focussed and continued efforts on implementing cost efficiency initiatives.
Net debt in the first half stood at £169.4 million (30 June 2022: £164.4m) with liquidity of £56.6 million, which it said was 'comfortably above' its banking covenant.
The company will announce interim results on 28 February 2023.
In November of last year, McBride said it was trading in line with expectations despite an uncertain political and macro-economic environment with a 29% increase in revenue in the first four months.
News by Reuters, additional reporting by ESM – your source for the latest private-label news. Click subscribe to sign up to ESM: European Supermarket Magazine.
