McBride (MCB) H2 2025 earnings summary

Executive summary

• Reported strong financial results for the year ending June 2025, with continued improvement in profitability and operational performance.

• Achieved fifth consecutive reporting period at new profit levels, supporting the reinstatement of annual dividends after five years, reflecting confidence in future growth.

• Transformation programme delivering positive results, with £50m net benefits on track.

• Maintained robust service levels, operational efficiency, and sustainability progress, positioning the business for future growth.

• Achieved further progress toward strategic ambitions, with a stronger business profile and sustained profit levels.

Financial highlights

• Revenue at £926.5m, up 0.7% at constant FX compared to FY24, with group revenues down £8.3m (1.9%) on actual basis.

• Adjusted operating profit held at £66.1m, with adjusted EBITDA of £85.8m and margin steady at 9.3%.

• Free cash flow reached £93.9m, with cash conversion at 109% and net debt reduced to £105.2m, debt cover at 1.2x, ahead of the 1.5x target.

• ROCE maintained at 33%, significantly above the 25% target.

• Recommended dividend of 3.0p per share for FY2025.

Outlook and guidance

• Solid start to the new financial year, with volumes in line with expectations and a strong pipeline from recent tender wins and new product launches.

• Focus remains on operational efficiency, transformation program delivery, and achieving midterm EBITDA target of 10%.

• Leadership is considering investment options to support further scale and value creation, with strong financial position supporting medium-term investment and shareholder returns.

• Private label market share remains at an all-time high, with robust customer partnerships.