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Shares in household goods manufacturer McBride have jumped this morning after it confirmed it had moved back into profitability in the current financial year amid sales volume growth.

In a trading update for the 12 months ended 30 June 2023, it said it would post a profit following two years of losses due to Covid supply chain disruption and the economic and inflationary impacts of the war in Ukraine.

Sales volumes were up 5.4% for the full year, following 12.7% growth in the fourth quarter.

It said improved demand for its products had been driven by a combination of business wins and strong demand increases on existing contracts.

“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,” it stated.

Overall revenues for the full year, reflecting both volume increases and pricing actions, will show growth of 28.4% on a constant currency basis compared to the year to 30 June 2022.

As a result of the strong fourth quarter trading performance, the group now anticipates that adjusted operating profit will be materially ahead of current market expectations and at the top end of previous guidance.

In April, McBride guided to adjusted operating profit of between £8m to £13m.

McBride shares have jumped 22.3% to 31.8p on this morning’s news.

Morning update

On the markets this morning, the FTSE 100 is up another 0.1% to 7,448.8pts.

As well as McBride, risers include Domino’s Pizza Group, up 1.2% to 310p, Just Eat Takeaway.com, up 0.8% to 1,317.7p and Haleon, up 0.7% to 314.8p.

Fallers include Ocado, down 2.3% to 606p, THG, down 1.8% to 96p and Hotel Chocolat, down 1.3% to 112p.

Yesterday in the City

The FTSE 100 made its fourth consecutive day of gains, rising 0.3% to 7,440.2pts yesterday.

Risers included Science in Spirt, up 5.3% to 15p, Domino’s Pizza Group, up 4.7% to 306.2p, Glanbia, up 3.5% to €14.00, THG, up 2.8% to 97.7p, Just Eat Takeaway.com, up 2.6% to 1,307, Ocado, up 1.9% to 620p and PZ Cussons, up 1.8% to 162p.

McBride was among the day’s fallers ahead of this morning’s trading update, falling 3.7% to 26p.

Other fallers included British American Tobacco, down 2.6% to 2,523p, Naked Wines, down 1.7% to 73.7p, Hotel Chocolat, down 1.3% to 113.5p and B&M European Value Retail, down 1.2% to 545.6p.

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