McBride, a manufacturer of private-label cleaning products and owner of the Oven Pride brand, stated yesterday that its first-half adjusted operating profit was set to come in slightly ahead of its expectations after benefitting from cash-strapped consumers trading down to cheaper supermarket lines.
In a brief trading update for the six months to the end of December 2023, the group revealed that its revenue had risen 9.9%, boosted by both volume growth and the impact of price rises last year to offset input cost inflation.
Overall volumes were 6.4% higher, driven by continuing momentum in private-label, where volumes grew 10.1% “as consumers continue to mitigate cost of living pressures”.
McBride noted that while input costs have generally stabilised, energy, employment, and financing costs continue to apply inflationary pressures. Additionally, the group said it continues to manage “significant supply chain volatility”.
McBride is due to post its full half-year results on 27 February.
NAM Implications:
- Lucky for some…
- But for branded suppliers, proof positive re the growth of own-label vs their branded equivalents…
- The key issue is the extent to which consumers, having tried own-label, will be prepared to revert to more expensive brand equivalents, without real encouragement.
- Thereby challenging the size of brand premia in many categories…
