McBride, the U.K.-based supplier of household and personal-care products, announced that it anticipates a 9.9% increase in revenue for the first half of its fiscal year. This growth can be attributed to both volume growth and pricing actions taken in the previous year to recover input cost inflation.
Furthermore, McBride stated that its adjusted operating profit for the period ending on December 31 is expected to exceed the board's expectations.
Volume Growth Driven by Private Label
McBride reported an overall volume increase of 6.4% for the period. This growth was largely fueled by the ongoing momentum in private label products, which experienced a 10% rise in volume. The company noted that consumers are relying on private label options to alleviate the financial pressures associated with the cost of living.
Debt Reduction and Cost Control Efforts Pay Off
As part of its strategy to reduce debt and maintain cost control, McBride successfully decreased its net debt to £145.7 million ($185.4 million) as of December 31, from £166.5 million as of June 30. Additionally, the company's liquidity has improved to £85 million, up from £59.3 million as of June 30.
Managing Inflationary Pressures and Supply Chain Volatility
While overall input costs have generally stabilized, McBride highlighted that energy, employment, and financing costs continue to place inflationary pressures on the company. Additionally, the group acknowledged the need to manage significant supply chain volatility.