McBride H2 Earnings Call Highlights

Fiscal 2026 performance was resilient but pressured by inflation: Revenue rose 0.8% to £7.7 million growth, while adjusted operating profit fell to £59 million. Conflict-related raw-material and packaging inflation reduced profit by an estimated £6 million.

McBride expanded through Eurotab and a major Vestacy agreement: Eurotab is expected to add about €65 million in annual revenue, while the five- to eight-year Vestacy manufacturing deal could add approximately £170 million by the second half of fiscal 2028.

Private label and transformation initiatives remain growth drivers: Private-label volume share in Europe rose to 36.7%, and McBride's transformation program delivered £15.3 million in cumulative benefits. Management expects continued pricing and margin pressure as input and freight costs remain volatile.

McBride (LON:MCB) reported what Chief Executive Officer Chris Smith described as a resilient full-year performance for the year ended June 30, 2026, despite a sharp rise in input costs during the final quarter linked to the Middle East crisis.

Revenue increased by £7.7 million, or 0.8%, while adjusted operating profit declined by £7.1 million year over year to £59 million, according to Chief Financial Officer Mark Strickland. On a constant-currency basis, revenue fell £17.3 million, or 1.8%.

Strickland said McBride experienced a 12.2% increase in raw-material and packaging costs in two months during the final quarter, a pace significantly faster than the inflation experienced in 2021 and 2022. The company estimated that the conflict-related inflation reduced full-year profit by about £6 million. Without that effect, adjusted operating profit would have been about £65 million, he said.

The company has sought price increases from customers and expects further discussions as elevated costs persist. Smith said McBride was working to minimize the impact on customers while recovering enough pricing to restore margins.

McBride said private-label household products continued to gain share across the five largest European economies, which it uses as a proxy for its wider market. Private-label volume share rose one percentage point to 36.7% for the 12 months through June 2026, while the total market was flat.

Over the past three years, the total market grew about 3.3%, according to Smith, while branded volumes were flat and private label drove the market's growth. Private-label share increased by 2.5 percentage points over the period.