McBride reports profit growth and plans dividend reinstatement in half-year results
Why we think this is good
The half-year results demonstrate solid financial performance with revenue growth, improved profitability across all divisions, and significant net debt reduction. The intention to reinstate annual dividends signals confidence in the company's financial position and future prospects. While facing some headwinds from inflation and materials costs, the company is benefiting from increased demand for private label products and growth in contract manufacturing. The transformation programme is progressing well, setting the stage for future improvements. However, the modest overall revenue growth prevents this from being an exceptional performance.
Key Points
- Revenue up 0.7% to £471.4m (2.9% at constant currency)
- Adjusted operating profit increased 7.9% at constant currency
- All five divisions reported profitable performance
- Net debt reduced by £13.9m since 30 June 2024
- Intention to reinstate annual dividends announced
- Private label volumes increased by 2.4%
- Contract manufacturing volumes rose 69.0%
- Transformation programme on track to deliver £50m net benefits over five years
- Full-year earnings expected to be in line with internal expectations
Summary
McBride's half-year results show revenue growth of 0.7% (2.9% at constant currency) and adjusted operating profit up 7.9% at constant currency. The company achieved profitability across all five divisions and reduced net debt by £13.9m since June 2024. Notably, McBride announced its intention to reinstate annual dividends, signaling confidence in its financial position. The business is benefiting from increased demand for private label products, with private label volumes up 2.4% and contract manufacturing volumes surging 69.0%. While facing inflationary pressures, the company's transformation programme is progressing well, targeting £50m net benefits over five years.