Household cleaning products company McBride suffered an 18% decline in annual profits due to “unprecedented” material price increases as truck driver shortages and supply chain problems take their toll.
Amd has warned that product costs must rise as a result.
The group, which is behind many supermarket cleaning products, posted underlying profit before tax of £ 19.9 million for the year ended June 30, compared to £ 24.2 million the previous year.
Since spring there has been an “exceptionally rapid escalation of input costs”, with cartonboard costs being more than 50% higher than a year ago and certain solvents being more than 300% higher.
McBride expects cost pressures to peak in the fall and is in “urgent” discussions with retailers to protect margins by raising prices while cutting costs by about £ 10 million.
The group said: “The cost increases in materials like plastics, paperboard and surfactants are unprecedented, with freight availability challenges and costs that add further inflationary pressures.”
McBride left its outlook for 2021-22 unchanged after warning last month that earnings could plummet by as much as 65%.