McBride Plc - Half-year Report
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("McBride", the "Company" or the "Group")
Strong first half improvement in challenging times with adjusted PBT up 74%;
New Compass organisation in place
23 February 2021
McBride, the leading European manufacturer and supplier of Private Label and Contract Manufactured products for the domestic household and professional cleaning/hygiene markets, announces its unaudited results for the six months ended 31 December 2020.
Strategy and management
Programme Compass divisional reorganisation complete; new organisation in place from 1st January 2021
- Five Divisions: Liquids, Unit Dosing, Powders, Asia Pacific and Aerosols
Divisional structure supported by a leaner Group structure
Refreshed Executive team including permanent Group CFO and Divisional Managing Directors
Capital Markets Day will provide further details of the Compass strategy at 1.30pm UK time today and will be subsequently available on the website
- Robust response to Covid-19 challenges, company-wide commitment to ensuring no production or business disruption from pandemic
- Overall customer service levels recovered to 90-95% range
- Household Contract Manufacturing delivered strong growth
- Strong profit performance driven by increased demand for cleaning, dishwash and aerosol products outweighing weakness in laundry products, and a slight softening of certain raw material and packaging pricing
- Further delivery against key business improvement objectives
- Group revenues of £362.9m (2019: £350.4m), 3.6% higher (1.7% at constant currency)
- Adjusted operating profit(2) of £19.0m (2019: £11.6m)
- Operating profit from continuing operations of £15.6m (2019: £8.5m)
- Adjusted profit before tax of £16.9m (2019: £9.7m), 74.2% higher
- Profit before tax from continuing operations of £13.5m (2019: £6.6m)
- Adjusted diluted EPS(3) from continuing operations 91.9% higher at 7.1p (2019: 3.7p)
- Diluted EPS from continuing operations 5.4p (2019: 2.0p)
- Share Buy-Back: 2.1 million shares purchased and cancelled at total cost of £1.5m
- Dividend policy reviewed as part of Group strategy reset; no interim dividend proposed (2019: nil)
- Net debt(5) at £117.6m (30 June 2020: £101.5m)
- Debt/adjusted EBITDA(7) 2.2x accounting basis (30 June 2020: 2.1x); 1.1x banking covenant basis (30 June 2020: 1.4x)
Chris Smith, Chief Executive Officer, commented:
"I am proud of the way our Company has responded to the challenges faced by the business from both Covid-19 and Brexit in the period and with these robust financial results for the six months. Our teams have shown significant commitment to complete the Compass strategy preparation and business reorganisation programme on schedule. The Group has been operating under its new divisional structure since the beginning of 2021 and I can already start to see beneficial effects of the new management teams leading their businesses. I look forward to sharing more on our "Compass" programme at our Capital Markets Day presentation later today.
The Company's consumer end markets continue to be both buffeted and enhanced in different ways by the Covid-19 environment making demand levels more variable than usual. As anticipated, we have seen input costs start to tick up but overall the Board's expectations for the full year remain in line with our December trading update."