McBride tumbles after profit warning

McBride shares tumbled on Thursday after the cleaning products maker cautioned that adjusted pre-tax profit for 2022 was set to slump due to "exceptional" price increases of raw materials.

"Although only seven weeks into the new financial year, the previously highlighted raw material environment remains extremely challenging both in terms of exceptional price increases and supply availability," it said.

"More recently, and in line with the general trading environment experienced by others, the group has also started to experience distribution challenges, particularly in the UK and Germany as a result of the shortage of Heavy Goods Vehicle (HGV) drivers which has impacted upon both transport availability and cost."

As a result, McBride said the first half of FY22 is now expected to see EBITA at approximately break-even, with profits heavily weighted towards the second half of the year. The business is expected to exit the year with run-rate profit levels in line with the average of the last few years.

Adjusted pre-tax profit for financial year 2022 is expected to be 55% to 65% lower than current market consensus for full-year 2021, while net debt at 30 June 2022 is set to be 5% to 10% higher than 2021 consensus.

Current market expectations for 2021 are for adjusted pre-tax profit of £19.7m and a net debt including IFRS 16 of £121.5m.

McBride said it has agreed price increase with customers but the effective start dates for these are "later than targeted".

At 0813 BST, the shares were down 13.8% at 73.07p.