McBride (LSE:MCB), the European manufacturer of private label and contract-manufactured household and hygiene products, reported earnings (adjusted EBITDA) of £80m for the year ended 30 June, down from £85.8m a year earlier.
Revenue edged up to £934.2m from £926.5m, with private label volumes growing 0.4% while contract manufacturing demand softened. Adjusted EBITDA margin slipped to 8.6% of revenue from 9.3%, with the decline mostly tied to a fourth-quarter margin recovery lag after the Middle East crisis drove up input costs and forced price increases with customers. Adjusted basic earnings per share fell slightly to 21.6p from 22.1p.
Net debt rose to £122.8m from £105.2m, taking leverage to 1.5 times adjusted EBITDA from 1.2 times.
The company returned £18m to shareholders, comprising £5.2m in dividends, a £6.4m share buyback and £6.4m in direct share purchases by its Employee Benefit Trust.
"We remained firmly in control with prompt actions to mitigate the material cost impact we faced", said chief executive Chris Smith, adding that further input cost uncertainty is expected in the new financial year.
McBride's Transformation programme delivered £15.3m in cumulative net benefits, keeping it on track for a £50m target by June 2028.
Since the year-end, McBride completed the acquisition of Eurotab Group, expected to be accretive to earnings from completion, and announced a multi-year contract manufacturing agreement with Vestacy expected to lift Group revenue and earnings by 15% at maturity in early 2028.
Early volumes in the new financial year are running in line with internal expectations, with first-quarter margin lag improving into the second quarter, subject to materials pricing.
News Intelligence what this means for the company
McBride's adjusted EBITDA fell 6.8% to £80m as Middle East-driven input cost spikes and logistics inflation compressed margins to 8.6% from 9.3%, despite flat revenue growth. The company is offsetting near-term headwinds with two growth bets: the completed Eurotab acquisition (expected earnings-accretive) and a Vestacy contract manufacturing deal projected to lift revenue and earnings 15% by early 2028, while maintaining shareholder returns at £18m and progressing its £50m transformation target on schedule.
Margin pressure from input costs and logistics is real and expected to persist into the new year, but McBride has demonstrated pricing power and cost mitigation. The Vestacy deal's 15% revenue and earnings uplift at maturity, combined with Eurotab's accretion and transformation programme progress (£15.3m of £50m target achieved), suggests the company is building structural growth to offset commodity headwinds—though near-term margin recovery remains subject to materials pricing volatility.
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