Trading down boosts sales for UK contract manufacturer

Annual performance at private label products supplier McBride has benefited from the growing popularity of cheaper own-brand products.

The company, which specializes in personal care and household care, reported a 13 per cent increase in sales to ₤792.4m, 4 per cent of which the company says is down to organic growth and the rest currency translation.

Strong sales helped push operating profit up 28 per cent to ₤27.4m, which, when adjusted for exceptional items came in at ₤36.2m for the year.

According to the company, the year’s positive performance was boosted both by an increased demand in private label products and a continued focus on product development.

“Our markets remain highly competitive but McBride's Private Label products continue to be relevant not only in the current environment but also in the longer term,” said chief executive Miles Roberts.

Private label market share increased

In all of the company’s markets, which include the UK, much of Western Europe and parts of Eastern Europe, private label market share increased over the year.

McBride believes this is partly down to the consumers’ reaction to the economic climate, and partly down to consolidation in the retail environment.

“It is also due to consolidation in the retail sector and the increasing focus of major retailers on differentiating their own market position through their Private Label propositions,” said the company in a statement.

The company also claims it has started off the new financial year with a positive performance and looking to the future it plans to seek acquisitions that will enhance the group’s earnings and geographical coverage, as well as improve efficiencies by standardising operating procedures across the whole group.

In addition, the company has appointed a new finance director who will take up the position from November 1.

Richard Armitage will be replacing Paul Bergin who has been serving as interim finance director.