McBride PLC on Thursday said that while a volatile inflationary market continues to impact costs, strong demand during the first quarter has delivered trading well above expectations.

McBride is a Manchester, England-based manufacturer and supplier of private label and contract manufactured products for the domestic household and professional cleaning and hygiene markets.

Shares in the firm were up 20% at 39.17 pence each in London on Thursday morning.

They rose after McBride said that trading in the first three months of the financial year was around £8 million ahead of internal forecasts at an earnings before interest, tax, and appreciation level.

Trading was strong despite labour, energy and indirect cost inflation, which continued to be sources of upward cost pressure. Raw material and packaging costs, meanwhile, remained relatively stable.

According to McBride, the cost of living crisis has meant that demand levels are being driven by a shift towards private label products across all markets. Subsequently, the favourable trading environment and momentum of the second half has continued into the first quarter.

McBride added that it has continued its focus as a value-adding partner with its customers as they increasingly grow their own label proposition. First quarter volumes were 8.0% higher overall compared to the first quarter of last year, with private label growth of 11%.

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