On Friday, McBride plc (LON: MCB) raised its profit forecast for the year as the ongoing coronavirus pandemic had fuelled demand for cleaning products in recent months. The COVID 19 crisis has so far infected more than 1.6 million people in the UK and caused over 60,000 deaths.
According to the current market consensus for McBride’s pre-tax profit for the year, which will close on 30 June 2021, is £25.2 million sterling. However, the UK manufacturer expects its pre-tax profit for the full year to be at least 10% above estimates.
McBrides performance in the stock market
On Friday, McBride opened on the stock exchange with a plus of about 8%. So far this year the stock market has fallen by 20% despite a 25% recovery since the first week of April. In comparison, McBride’s performance on the stock market was quite poor, with an annual decline of around 30%.
At the time of writing, McBride is valued at £129 million and has a price/earnings ratio of 19.35.
The owner of prominent brands such as Hospec, Clean N Fresh, Ovenpride and Surcare said on Friday that trading in November and December is expected to be better than in the same months last year. In November and December 2019, McBride’s performance remained under pressure.
According to the London-based company, McBride’s performance remained under pressure:
“This resulted in improved earnings performance combined with continued factory efficiency, limited operational impact of COVID-19, lower than expected operating costs and input costs for certain raw materials, resulting in improved first half year earnings compared to last year.
In the previous fiscal year, McBride experienced a 33% decline in net income due to weaker demand for the company’s laundry products.
Primark estimates turnover this autumn at £430m
In a separate news release from the UK, Associated British Foods (LON: ABF) estimated that the sales of its fashion subsidiary Primark this fall were revised upwards to £430 million due to the ongoing coronavirus pandemic.
However, the company was confident that the phenomenal pre-Christmas retail sales will help to offset the slump in sales associated with COVID-19. AB Foods said last month that its full year profit was 40% lower due to the COVID-19 disruption.
On an annualized basis, Associated British Foods is currently 8% lower on the stock market than its previous full year profit. At the time of writing this article, the British multinational is estimated to be worth £18.76 billion and has a price-to-earnings ratio of 41.15.