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McBride plc (GB:MCB)
:MCB
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McBride (MCB) AI Stock Analysis

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GB:MCB

McBride

(LSE:MCB)

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Outperform 70 (OpenAI - 4o)
Rating:70Outperform
Price Target:
135.00p
▲(8.17% Upside)
McBride's overall score reflects strong earnings call performance and valuation, supported by technical indicators. Financial performance is stable but challenged by high leverage and inconsistent revenue growth. The company's strategic initiatives and dividend reinstatement are positive signs for future growth.

McBride (MCB) vs. iShares MSCI United Kingdom ETF (EWC)

McBride Business Overview & Revenue Model

Company DescriptionMcBride plc, together with its subsidiaries, manufactures and sells private label household and personal care products to retailers and brand owners in the United Kingdom, the Asia Pacific, rest of Europe, and internationally. It operates through five segments: Liquids, Powders, Unit dosing, Aerosols, and Asia Pacific. The Liquids segment offers laundry detergent, dishwasher liquids, surface cleaners, and bleach. The Unit dosing segment provides auto dishwasher tablets, laundry capsules, and water softeners. The Powders segment offers laundry, auto dishwash, stain removers, water softeners, and powdered cleaning products. The Aerosols segment provides household, personal care, insecticides, sanitizers, and professional cleaning products. The Asia Pacific segment offers shampoo, liquid soap, auto dishwasher tablets, and washing up liquids. The company also provides contract manufacturing services. The company offers products under the Surcare, Oven Pride, Clean N Fresh, and Hospec brands. McBride plc was founded in 1927 and is based in Manchester, the United Kingdom.
How the Company Makes MoneyMcBride generates revenue primarily through the sale of private label and contract-manufactured household and personal care products to retailers. The company's key revenue streams include long-term supply agreements with major retailers, private label manufacturing contracts, and partnerships with brand owners. McBride capitalizes on its extensive manufacturing capabilities and ability to offer cost-effective, customized solutions to retailers looking to expand their private label offerings. Additionally, the company's focus on innovation and sustainability helps maintain competitive pricing and attract a broad customer base, further contributing to its earnings.

McBride Earnings Call Summary

Earnings Call Date:Sep 17, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Feb 24, 2026
Earnings Call Sentiment Positive
McBride plc has shown strong financial and operational performance with significant improvements in EBITDA, cash generation, and market penetration. The company successfully reinstated its dividend and is progressing well with its strategic transformation initiatives. However, challenges remain with revenue declines in actual terms and ongoing cost pressures in a competitive market.
Q4-2025 Updates
Positive Updates
Strong Financial Performance
McBride reported doubled EBITDA returns from historic levels and normalized balance sheet. The company maintained adjusted operating profit at GBP 66.1 million, similar to last year, and achieved strong cash generation with free cash flow at GBP 93.9 million.
Successful Market Penetration and Growth
The company reported a volume growth of 4.3%, with private label growth continuing to outperform branded growth. Notably, there was a 7% growth in laundry liquids against a market growth of 2.8%.
Reinstatement of Annual Dividend
Due to the improved financial position, McBride has reinstated its annual dividend, recommending a 3p per share dividend for the fiscal year 2025, the first in over 5 years.
Strong Operational Improvements
The company achieved the best service levels in over 6 years, and improved carbon footprint, with an intensity reduction of 8%. Manufacturing improvements led to a 2% increase in operating effectiveness.
Strategic Initiatives
McBride's transformation program is on track to deliver GBP 50 million cumulative net benefit over 5 years, with significant progress in commercial and service excellence programs.
Negative Updates
Revenue Decline in Actual Terms
Group revenues were down GBP 8.3 million or 0.9% on an actual basis due to currency impacts and lower selling prices, despite volume growth.
Cost Pressures
Inflation remains prevalent, leading to increased distribution costs and ongoing focus on margin management to sustain profitability.
Competitive Market Challenges
The liquids business experienced slightly weaker margins, declining by just under 1%, and the market for powders is facing a decline.
Company Guidance
During the call, McBride plc provided comprehensive guidance on their financial performance and strategic outlook. The company reported a slight decline in group revenues by GBP 8.3 million or 0.9% on an actual basis for the fiscal year ending June 2025, but a 0.7% increase on a constant currency basis. The CEO, Christopher Ian Smith, highlighted that they have doubled their EBITDA returns and normalized their balance sheet, with a significant reduction in net debt now close to GBP 100 million, surpassing their debt cover target of 1.5x. McBride announced the reinstatement of an annual dividend, recommended at 3p, reflecting their confidence in sustaining high profit margins amid a competitive market. The company also outlined their transformation program, which aims to deliver GBP 50 million in cumulative net benefits over five years, and reported a 4.3% volume growth, driven by new contract manufacturing volumes and private label expansion. Despite challenges from cost pressures, McBride maintained an EBITDA margin of 9.3% and demonstrated strong cash flow generation with GBP 93.9 million free cash flow, positioning them for future growth and investment opportunities.

McBride Financial Statement Overview

Summary
McBride shows a stable financial position with improved profitability margins and cash flow generation. However, high leverage and inconsistent revenue growth pose challenges. Continued focus on operational efficiency and debt management is crucial.
Income Statement
65
Positive
McBride's income statement shows a mixed performance. The gross profit margin has improved over the years, indicating efficient cost management. However, the net profit margin remains low, reflecting challenges in translating revenue into profit. Revenue growth has been inconsistent, with a recent decline, suggesting potential market challenges or competitive pressures. EBIT and EBITDA margins are stable but not particularly strong, indicating room for operational efficiency improvements.
Balance Sheet
58
Neutral
The balance sheet reveals a high debt-to-equity ratio, which poses a risk of financial leverage. However, the company has shown improvement in return on equity, indicating better utilization of shareholder funds. The equity ratio is moderate, suggesting a balanced asset structure, but the high leverage remains a concern for financial stability.
Cash Flow
70
Positive
Cash flow analysis shows positive trends, with a significant improvement in free cash flow growth, indicating better cash management. The operating cash flow to net income ratio is healthy, suggesting good cash conversion from earnings. However, the free cash flow to net income ratio indicates that not all earnings are translating into free cash flow, which could impact future investments or debt repayments.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue926.50M926.50M934.80M889.00M678.30M682.30M
Gross Profit342.10M342.10M347.90M261.20M188.20M234.60M
EBITDA76.10M76.10M80.60M20.80M-7.60M39.10M
Net Income33.20M33.20M33.30M-11.50M-24.00M13.40M
Balance Sheet
Total Assets505.30M505.30M476.60M470.30M466.10M431.80M
Cash, Cash Equivalents and Short-Term Investments34.20M34.20M9.30M1.60M4.50M24.90M
Total Debt139.40M139.40M140.80M168.10M168.90M143.30M
Total Liabilities411.00M411.00M413.20M433.20M409.10M362.00M
Stockholders Equity94.30M94.30M63.40M37.10M57.00M69.80M
Cash Flow
Free Cash Flow43.10M43.10M39.60M-900.00K-46.30M-9.20M
Operating Cash Flow63.10M63.10M59.20M11.10M-32.00M14.60M
Investing Cash Flow-30.00M-30.00M-18.50M-11.60M-7.80M-19.80M
Financing Cash Flow-8.80M-8.80M-33.20M-1.70M19.50M-12.90M

McBride Technical Analysis

Technical Analysis Sentiment
Positive
Last Price124.80
Price Trends
50DMA
120.03
Positive
100DMA
131.11
Negative
200DMA
134.56
Negative
Market Momentum
MACD
1.29
Negative
RSI
57.03
Neutral
STOCH
45.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MCB, the sentiment is Positive. The current price of 124.8 is above the 20-day moving average (MA) of 123.80, above the 50-day MA of 120.03, and below the 200-day MA of 134.56, indicating a neutral trend. The MACD of 1.29 indicates Negative momentum. The RSI at 57.03 is Neutral, neither overbought nor oversold. The STOCH value of 45.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:MCB.

McBride Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
£213.04M6.3942.11%-0.89%1.30%
70
Outperform
£182.55M10.1815.19%5.25%19.01%-15.21%
66
Neutral
£18.50M7.5410.60%3.52%1.64%
65
Neutral
£164.81M10.2925.14%5.42%6.38%-10.55%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
56
Neutral
£55.22M-6.61%-13.84%76.47%
51
Neutral
£327.62M-2.51%1.92%-2.67%89.86%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:MCB
McBride
124.80
9.80
8.52%
GB:CRL
Creightons
27.00
-1.60
-5.59%
GB:WINE
Naked Wines plc
72.00
16.00
28.57%
GB:PZC
PZ Cussons
79.00
-5.41
-6.41%
GB:W7L
Warpaint London
203.00
-324.92
-61.55%
GB:KITW
Kitwave Group PLC
218.00
-113.21
-34.18%

McBride Corporate Events

DividendsBusiness Operations and StrategyFinancial Disclosures
McBride Reports Steady Financial Performance and Plans Dividend Reinstatement
Positive
Jul 16, 2025

McBride plc has reported a steady financial performance for the year ending June 2025, with adjusted operating profit expected to meet expectations. The company experienced a 0.7% increase in group revenue and a significant rise in contract manufacturing volumes by 48.9%, attributed to new long-term contracts. Despite the stabilization of private label market share, McBride continues to focus on reducing net debt, achieving a reduction of £26.3m, and plans to reinstate annual dividends, signaling a positive outlook for stakeholders.

Executive/Board ChangesBusiness Operations and Strategy
McBride PLC Grants RSU Award to CEO Chris Smith
Positive
Jun 16, 2025

McBride PLC has announced the grant of a Restricted Share Unit (RSU) award to its CEO, Chris Smith, under the company’s 2020 Restricted Share Unit Plan. The award, consisting of 95,680 ordinary shares, will vest over three years with an additional two-year holding period. This move aligns with the company’s strategy to incentivize its leadership, potentially enhancing its market positioning and aligning management interests with those of shareholders.

Regulatory Filings and Compliance
McBride PLC Announces Change in Shareholder Voting Rights
Neutral
Jun 10, 2025

McBride PLC, a UK-based company, has announced a change in its shareholder structure due to an acquisition or disposal of voting rights by DUMAC, Inc., a U.S.-based entity. The notification reveals that DUMAC, Inc. now holds 2.673580% of the voting rights in McBride PLC, a decrease from a previous position of 3.878120%. This shift in voting rights may impact McBride’s governance and decision-making processes, reflecting a change in influence among its shareholders.

Business Operations and Strategy
McBride PLC Announces Change in Major Shareholder Holdings
Neutral
May 29, 2025

McBride PLC has announced a change in its major holdings, with DUMAC, Inc., a U.S.-based entity, reducing its voting rights in the company from 4.54% to 3.88%. This adjustment in holdings, effective as of May 28, 2025, reflects a strategic shift that could influence McBride’s shareholder dynamics and potentially impact its market positioning and stakeholder interests.

Business Operations and StrategyRegulatory Filings and Compliance
McBride PLC Announces Change in Voting Rights Structure
Neutral
May 23, 2025

McBride PLC, a UK-based company, has announced a change in its voting rights structure due to an acquisition or disposal of shares by DUMAC, Inc., a U.S.-registered entity. The notification indicates that DUMAC’s voting rights in McBride have decreased from 5.9237% to 4.54087%, reflecting a significant shift in shareholder influence. This change may impact McBride’s governance and decision-making processes, potentially affecting its strategic direction and stakeholder relations.

M&A TransactionsBusiness Operations and Strategy
McBride PLC Announces Change in Voting Rights Structure
Neutral
May 19, 2025

McBride PLC, a UK-based company, has announced a change in its voting rights structure due to an acquisition or disposal of shares by DUMAC, Inc., a US-based entity. The notification indicates that DUMAC’s voting rights in McBride have decreased from 6.906760% to 5.923700%, reflecting a shift in shareholder influence and potentially impacting the company’s governance and strategic decisions.

M&A TransactionsBusiness Operations and Strategy
McBride PLC Announces Change in Voting Rights
Neutral
May 12, 2025

McBride PLC has announced a change in its voting rights structure following an acquisition or disposal of shares by DUMAC, Inc., a US-based entity. The transaction resulted in DUMAC holding 6.91% of McBride’s voting rights, down from a previous position of 7.91%. This adjustment in voting rights could influence McBride’s shareholder dynamics and strategic decisions moving forward.

Business Operations and StrategyRegulatory Filings and Compliance
McBride PLC Announces Changes in Voting Rights Structure
Neutral
May 6, 2025

McBride PLC has announced a change in its voting rights structure following an acquisition or disposal of voting rights by DUMAC, Inc., a US-based entity. The transaction resulted in DUMAC, Inc. holding 7.914150% of McBride’s voting rights, a decrease from the previous 8.941840%. This adjustment in voting rights may influence McBride’s governance and decision-making processes, impacting its strategic direction and potentially affecting stakeholder interests.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 17, 2025