Private label cleaning product manufacturer McBride has delivered its fifth consecutive half-year of profit growth, despite exchange rate headwinds that knocked revenue into contraction.
Profit before tax at McBride rose 5.4% to £49m in the year to 30 June 2025, as demand for private label products grew and market share held at “all-time high levels”.
McBride shares soared 13.5% to 121.7p in response to the results and the fact the group reinstated its dividend at 3p a share, signalling confidence in the transformation.
The company’s positive outlook for 2026 marked an improvement on its attitude in July, when McBride warned that demand for private label products had stabilised.
The manufacturer said it expected to see volume growth in the year ahead thanks to successful contract wins in private label and brand contracts.
“The inflationary backdrop continues to shape retailer behaviour, with many seeking value-led propositions and cost reduction initiatives,” the company added.
“McBride is well positioned to respond to these dynamics, leveraging its scale, efficiency and customer partnerships to deliver competitively priced and high-quality products,” it said.
The jump in profit came despite currency headwinds for the group.
Despite constant-currency revenue growth of 0.7%, McBride’s stated revenue fell to £926.5m, down 0.9% on the previous year.
Operating profits were similarly impacted. Adjusted for amortisation and exceptional events, operating profit fell slightly to £66.1m – despite a 0.5% constant currency gain.
McBride chief executive Chris Smith praised “another year of strong operational and financial results” at the end of a fifth half of improved profitability.
“This sustained performance reflects the effectiveness of our strategy and the dedication of our teams across the group, further strengthening our industry leadership across Europe,” he said.
“We have continued to deepen our customer partnerships, secured new long-term contracts, and reinforced our strategic focus in key markets such as Germany and laundry.”
Alongside an average service level improvement to 94% – the highest in over six years – and “disciplined cost and margin management”, the company has built up profit and cut debt further ahead of its leverage target.
Net debt has now been reduced to £105.2m, down from £131.5m, handily beating its target of keeping net debt below a 1.5x ratio of adjusted EBITDA at 1.2x.
“Key to this important development was the successful refinancing of the group’s debt facilities in November 2024, completed with significantly improved terms,” the company said. “The new, long-term financing facilities reflect the confidence of McBride’s banking partners in its strategy and performance.”
The company also reported solid progress on its transformation agenda, which it said remained on track to deliver £50m in net benefits over the five years to 2028. In 2024, the company made “important progress” on the upgrade plans to its ERP system, which it expects to go live in autumn 2025.
McBride also achieved strong progress on its carbon emission reduction programme, cutting emissions 3.1% in absolute terms, with a 7.6% reduction in carbon intensity.
