McBride plc (“McBride”, the “Company” or the “Group”)
AGM Trading Update
Input cost inflation continues to rise
Global supply chain issues worsen
19 October 2021
McBride plc (the “Group”), the leading European manufacturer and supplier of private label and contract manufactured products for the domestic household and professional cleaning and hygiene markets, provides the following trading update ahead of its 2021 Annual General Meeting later today.
Since providing the Company's outlook for the current financial year on 9 September 2021, global supply chains have continued to tighten. Raw material and packaging costs have moved faster and to a higher level than previously expected. In addition, the shortage of haulage capacity and higher fuel costs has continued to substantially inflate distribution costs – again ahead of the Board's expectations – which show no sign of abating in the near term.
As a result, the Group has begun to seek a second round of substantial price increases from all its customers across all divisions, which, dependent upon specific mix, could result in a minimum of mid to high teen percentage increases.
The Group's manufacturing facilities and logistics activities have operated well in the period and have shown strong resilience despite all these uncertainties and supply chain disruptions and have worked tirelessly to maintain the best possible customer service. It is pleasing to report that coronavirus restrictions at our Asia operations have recently been lifted and our new facility in Malaysia is ramping up production.
As previously indicated, earnings for FY22 are expected to be weighted to the second half of the financial year, but now with the first half expected to deliver a loss of up to £10m at the EBITA level. Given the unpredictability of current global supply chain and ongoing uncertainty over input costs, the Board is unable to update the full year outlook it provided in its preliminary results on 9 September 2021.
The Group's half year trading statement will be released in January 2022.