McBride (MCB) H1 2026 earnings summary

Executive summary

• Delivered strong financial and operational performance for the third consecutive year, with profitability at double historic averages and robust cash generation.

• Private label market share reached 36.1%, outperforming brands and supported by a strong pipeline of new business wins for H2 FY26.

• SAP S/4HANA ERP system successfully launched in the UK, stabilizing quickly and supporting future efficiency and operational excellence, with further rollout planned.

• Transformation programmes delivered cumulative net benefits, with further progress expected by FY28.

• Nearly £13 million deployed in shareholder returns via dividends, share buybacks, and EBT purchases.

Financial highlights

• Revenue for H1 FY26 was £475.2m, up £3.8m (+0.8%) year-over-year, driven by private label and contract manufacturing growth.

• Adjusted EBITDA held steady at £41.8m (8.8% margin), consistent with the prior year.

• Adjusted operating profit slightly down to £31.5m, mainly due to SAP implementation impact.

• Adjusted basic EPS at 10.8p (2024: 11.9p), reflecting a higher tax rate.

• Free cash flow generation of £24.2m; net debt increased to £120.6m, representing 1.4x adjusted EBITDA.

Outlook and guidance

• Full-year results expected to be in line with analysts’ expectations, with positive momentum anticipated for FY27.

• New business wins and contract launches in H2 and FY27 expected to drive growth.

• Material costs anticipated to remain stable, with inflation managed through tight overhead control.

• Ongoing transformation initiatives and SAP rollout to deliver further efficiencies and risk reduction.