Get the app today! App Store Play Store

McBride's Shares Slump After Warning On Bigger Loss As Costs Surge

Published on Dec 16 2021 9:09 AM in A-Brands tagged: Trending Posts / McBride / Oven Pride

McBride's Shares Slump After Warning On Bigger Loss As Costs Surge

Britain's McBride raised its estimate for half-year losses.

Britain's McBride raised its estimate for half-year losses as the maker of Oven Pride cleaning products battles a relentless surge in costs from global supply chain pressures, driving its shares down by 10% on 16 December.

The company projected an interim operating loss of between £14 million and £17 million for the six months to December, up from the £10 million ($13.3 million) it had estimated in October.

McBride had reported an adjusted operating profit of £19 million a year earlier.

Supply Chain Bottlenecks

British manufacturers have faced supply chain bottlenecks due to congestion at global ports and a shortage of truck drivers, with some warning that the pressures may not ease until 2022.

McBride said packaging costs remained high and that increased fuel expenses and a shortage of haulage capacity were also keeping distribution costs elevated.

The London-listed company said it remained in talks with customers about more price hikes to cushion the impact of higher costs.

Analysts said McBride and its rivals were facing "exceptionally tough" market conditions, but added that "assuming the price increases stick and volumes are maintained, the 2H performance should improve significantly."

The company's shares were down 9.8% at 53.4p at 0845 GMT.

Raising Prices 'Substantially'

In October, the cleaning products maker McBride said it was raising prices substantially for the second time in two months, as it deals with a double whammy of global supply chain pressures and a shortage of lorry drivers in the UK.

McBride, which has already forecast a 65% drop in full-year profit, said it was seeking substantial price increases from all its customers again and that this could result in mid to high-teen percentage increases.

News by Reuters edited by Donna Ahern, Checkout. For more A Brands stories click here. Click subscribe to sign up for the Checkout print edition.

Share on Facebook Share on Twitter Share on LinkedIn Share via Email