British cleaning product maker McBride noted on Friday it expects full-year profit to come in above current forecasts as soaring raw material costs steadied and demand strengthened, sending shares up 19%.
The group has taken a hit in the past couple of years from rising costs that started with the COVID pandemic and worsened due to shortages triggered by Russia's invasion of Ukraine and extreme weather.
On Friday, it said that it expects to return to profitability for the year ended 30 June, having reported operating losses since the first half of fiscal year 2021.
Adjusted Operating Profit
Analysts on average expect McBride's adjusted operating profit for the full year to be £9.7 million, according to company-compiled estimates, but the group said it expects to beat that estimate.
"The improvement in demand for our products has been driven by a combination of business wins and strong demand increases on existing contracts," it said in a statement.
Shares in the London-listed owner of brands like 'Clean N Fresh' and 'Oven Pride' were trading at 31 pence by 0710 GMT, having gained more than 26% so far this year.
Inflation
Britain's inflation has cooled slightly from double-digit highs, while consumer goods companies have minimised damage to profits and margins largely by passing them on to retailers and shoppers through price hikes.
Peel Hunt analysts said in a note: "Helpful consumer conditions and strong operational execution have supported the top line and as cost inflation abates and self-help beds in, margins will continue to improve."
The company said it also expects revenue to be up 28.4% for the year.
Read More: McBride Says Thrifty Shoppers Helping Turn Its Fortunes
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