McBride, a major manufacturer of private-label cleaning products and owner of the Oven Pride brand, stated last week that it has continued to trade in line with its expectations despite the political and macroeconomic uncertainty.
Ahead of its AGM, the Manchester-based company said that it was focused on executing its volume and revenue plans via a combination of new wins and private label share growth.
Revenues were 29% higher year-on-year for the four months that ended 31 October, despite the overall market for household products being lower.
McBride highlighted that while the cost of most raw material groups is steadying, input costs for certain raw materials have continued to climb to all-time highs. It claimed its control of expenses mitigated the higher costs and allowed it to trade in line with its expectations.
The company stated that its funding situation had stabilised following its recent refinancing. However, McBride noted that supplies of certain raw materials and packaging items remain tight, while high energy costs are driving input prices further upwards and production of certain key materials downwards. Consequently, the company is continuing to seek mitigations with its customers through further price increases or product engineering, with the size of the required margin recovery widely varying between product families.
NAM Implications:
- Given that own-label sales are growing at the expense of mid-side and small brands…
- …McBride are patently benefitting.
- Also with ingredients largely in common with equivalent brands…
- …brands and McBride are subject to similar inflationary pressures.
- So, carefully does it as McBride pushes forward.
- With the only threat being the possibility of struggling brands beginning to offer own-label?
