The share price of UK-based cleaning products manufacturer McBride PLC (GB:MCB) soared over 15% after the company posted robust results for Q1 2024. The company’s numbers exceeded the forecasts, driven by the huge demand for its private-label products. Indeed, its budget-friendly choices were a hit with consumers facing challenges during the cost-of-living crisis.
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The company will publish its first-half results for FY24 in February 2024.
After the update, the stock surged as much as 22% and was trading up by 17.6% at the time of writing. This brought the year-to-date gain for the stock to over 90%.
McBride is a manufacturer and retailer of household cleaning goods, selling around 1 billion products annually. The company’s product range includes dishwasher liquids, cleaners, and detergents.
Higher Demand amid Inflationary Pressures
For the first quarter that ended on September 30, 2023, the company posted an EBITA of £8 million, ahead of its internal forecasts. The demand for the company’s private label products continued its momentum from the second half of FY23 to this quarter as well. The total volumes for Q1 were up by 8%, with private-label products registering a growth of 10.8% as compared to Q1 2023.
On the flip side, the higher labour and energy costs will continue to be a pressure point for the company in the future. While the raw material and packaging costs remain stable.
Amidst the unpredictable economic conditions, McBride’s recent numbers showcase its resilience and adaptability. However, it also underscores the persistent challenges of inflation and escalating costs. Investors will keenly monitor the company’s performance as it navigates through these challenges in the upcoming quarters.
