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Birmingham Post
Birmingham Post
Jon Robinson

Losses widen at maker of supermarket own-label cleaning products as costs rise

Losses are set to widen at the maker of supermarket own-label cleaning products because of rising costs, it has been confirmed.

Manchester-based McBride, which also produces brands such as Oven Pride, said it now expects to report an adjusted loss before interest, tax and amortisation (EBITA) of between £14m and £17m for the six months ended December 31, 2021.

The rise compared to its previous update in October is a "consequence of the ongoing rapidly rising input costs and the timing of pricing agreements".

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A statement issued to the London Stock Exchange added: "At this stage, our wide range of outcomes is a result of pricing delays with a small number of customers and the resultant implications, which could impact short term volumes."

It added: "In line with much of the rest of the world, in the period since 19 October 2021, when the group made its last trading update, raw material and packaging costs have continued to experience very significant inflationary pressures with availability continuing to impact our supply chain efficiency.

"In addition, the shortage of haulage capacity and even higher fuel costs has not abated and have continued to substantially inflate distribution costs.

"McBride has been actively engaged with all its customers to secure substantial price increases to mitigate the impact of these exceptional cost rises affecting the whole industry.

"Our early increases in late summer have now been outpaced by further rises in input costs and hence further pricing action has been underway more recently.

"It is pleasing to see the support of most customers to these price increase requests with the effect of these further increases starting to benefit December trading and delivering more fully from January onwards."

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