By Shares of McBride, the U.K. manufacturer of household cleaning products, experienced a significant decline due to challenges stemming from supply-chain volatility and high costs caused by inflationary pressures.
At 0821 GMT, shares were down 15% or 13.80 pence, currently valued at 76 pence. Despite this recent decrease, the company’s stock price has nearly tripled in the past year.
In a statement released on Tuesday, McBride announced that it expects to report a 9.9% increase in revenue for the half-year ending on December 31. This growth is attributed to both volume expansion and pricing adjustments made to offset inflationary factors impacting input costs.
The company acknowledged that while input costs have somewhat stabilized, inflationary pressures from energy, employment, and financing expenses persist. Additionally, the company highlighted the ongoing management of significant supply chain volatility.
While exact figures were not provided, McBride stated that it anticipates adjusted operating profit for the period to surpass the board’s expectations.
The company’s overall volumes experienced a 6.4% increase, driven primarily by the continued success of private label products. Consumer demand for these affordable alternatives remains strong as individuals strive to mitigate the impact of rising living costs.
McBride emphasized its commitment to reducing debt and maintaining strict cost control measures. As of December 31, net debt stood at £145.7 million ($185.4 million), down from £166.5 million on June 30. Liquidity also improved to £85 million, compared to £59.3 million on June 30.
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