McBride falls to H1 loss as supply chain woes weigh on performance
Manufacturer McBride posted an interim loss on Tuesday as the group said heightened costs related to supply chains woes had weighed heavily on its performance.
McBride reported an adjusted pre-tax loss of £16.9m for the six months ended 31 December, compared with an adjusted pre-tax profit of £16.9 a year earlier, while revenues slipped 10.9% year-on-year to £323.4m.
The London-listed firm said supply issues triggered by a Covid-19 pandemic-fuelled surge in demand for retail goods had forced it look at raising prices in order to counter rising costs of raw materials, labour and transport. McBride said it was in talks with customers about hiking prices, and highlighted that its entire outlook rests on the outcome of those discussions, inflationary pressures and supply chain disruptions.
McBride added that it expects to return close to break-even at an earnings before interest, taxes, and amortisation level in the final quarter, before moving on to register modest profits in the new financial year.
Chief executive Chris Smith said: "The group is experiencing the most extreme inflationary cost environment probably ever to hit this sector. As we progress through the first part of 2022 it is encouraging that we expect the final quarter of our financial year to see our pricing actions getting closer to maturity and the business returning to close to break-even at an EBITA level and cash-flow neutral.
"The outlook is of course heavily dependent on our actions to deliver the outstanding essential price increases currently in discussion with our customers, as well as other external factors such as the development of input costs and other inflationary pressures, and continuing supply chain disruptions."
As of 0815 GMT, McBride shares were down 5.21% at 45.50p.