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Shares in McBride have surged this morning as the own-label household cleaning products supplier guided for a continued improvement in profitability and higher revenues.
The company said, in a trading update for the six months to 31 December, revenues were 2.9% higher than a year ago as volumes climbed 5.9%.
Private label volumes grew by 2.4% and contract manufacturing volumes increased by 69%, driven mostly by the successful launch of two new multi-year contracts with large fmcg clients over the past six months.
Adjusted operating profits in the first half are expected to be 8% ahead of the same time last year, with full-year profits to be line with forecasts.
McBride also cut its net debt to £117.6m at the period end, down from £131.5m in June 2024.
As a result of an improvement in the group’s financial position and the strong trading, McBride said it intended to reinstate annual dividends for the current financial year.
Shares in the group soared 11% to 112p as markets opened this morning, continuing 2024’s recovery.
Analysts at Peel Hunt said: “McBride has continued its impressive run of upgrades, and market trends are strong and look set to continue.”
McBride suffered a string of profit warnings and downgrades in 2021 as it struggled to absorb spiking input cost Inflation amid a lag in passing on increases to its retail partners. But the group has since recovered strongly.
Morning update
Food stores volumes fell 1.9% in December, contributing to a surprise fall for British retail sales last month, according to the Office for National Statistics (ONS).
The government body said the amount of total goods bought fell 0.3% in December, following a small rise of 0.1% in November.
ONS senior statistician Hannah Finselbach said it had beeen “a very poor month for food sales, which sank to their lowest level since 2013, with supermarkets particularly affected.
Full story available here at thegrocer.co.uk.
Aldi is set to open nine stores in the capital this year as part of a £55m investment within the M25. The discounter revealed four of the locations set to welcome new stores in the next 12 months: Wimbledon, Fulham Broadway, Caterham and Orpington.
The openings form part of Aldi’s £650m investment in Britain in 2025.
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