Annual Report and Accounts for Year Ended 30 June 2024

Our Highlights

Financial highlights

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Strategic highlights

(1) Further details on APMs can be found in note 2 to the consolidated financial statements on pages 132 to 134.

Alternative performance measures

This report includes alternative performance measures (APMs) that are presented in addition to the standard International Financial Reporting Standards (IFRS) metrics. The APMs(1) used are adjusted operating profit; adjusted EBITDA; adjusted profit before tax; adjusted profit for the year; adjusted EPS; free cash flow; cash conversion %; adjusted ROCE; liquidity; net debt; net debt cover ratio and interest cover ratio.

McBride At A Glance

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With trading roots dating back to 1927, McBride boasts a strong heritage. As the leading European manufacturer and supplier of private label and contract manufactured products for the domestic household and professional cleaning and hygiene markets, McBride offers end-to-end development

and manufacturing capabilities to a wide range of customers in Europe and Asia Pacific.

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Key:

 Liquids  Aerosols

 Powders

Europe

Holstebro

Middleton

Hammel

eperStrzelce

Rosporden

Sallent Bagnatica

Asia Pacific

Ho Chi MinhCity

Kuala Lumpur

Group sales by division See more about our divisions on pages 13 to 17

Asia Pacific

2.6%

3,695

colleagues globally(1)

Chairman's Statement

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Building on the momentum from 2023, McBride has performed a significant turnaround and achieved an outstanding full-year result.

Jeff Nodland

Chairman

Dear shareholder

Welcome to the McBride 2024 Annual Report and Accounts.

I am delighted to report an excellent

full-year performance by the Group. Led by our committed executive team, McBride and our specialist divisional teams have built on the solid recovery in 2023 and delivered an impressive turnaround, which has set a strong platform for further financial success.

Strong full-year performance

For the year ended 30 June 2024, the Group has substantially increased revenue and delivered on upgraded profit expectations, with each of its five divisions growing profitably. Whilst the ongoing cost-of-living pressure on consumers across our geographies has fuelled a transition towards value products and private label, it is McBride's strategic and operational execution that has ensured the Group has been able to capitalise on the market trend and ensure consumers are provided with the products they desire and need.

In addition, a key driver for this impressive financial performance has been the strategic focus of McBride's divisional teams to build closer customer relationships. The full-year results demonstrate the significant strategic benefit of building these partnerships and what it means to have such depth of market knowledge possessed by our teams.

Strategic and operational progress

At our Capital Markets Day (CMD) in March this year, the executive and divisional teams presented the Group's progression against the Compass strategy which was designed to deliver divisional focus, specialism and accountability. Now, having successfully executed on its objectives, the foundation has been laid for McBride to progress its Transformation programme which will enhance the Group's operational, service and commercial capability.

Importantly, the successful implementation of the Compass strategy has continued to enhance shareholder value, as demonstrated by McBride's consistent market valuation appreciation since it was launched in 2021. The Group is now in a strengthened financial position having materially reduced the debt level during the year, in line with our stated ambition at the CMD.

Sustainability

We continue to ensure that a focus on sustainability is embedded throughout our business, with climate objectives closely aligned to our fundamental values and key to our strategy. Importantly, McBride has an established governance structure to provide a high level of expertise and oversight to deliver on key initiatives. The Group has also made the significant commitment to science-based targets for Scope 1, 2 and 3 emissions, which cover operations, supply chain and our product portfolio.

On pages 25 to 35 we explain our approach to enhancing the sustainability of our business, whilst outlining some of the key initiatives we are taking to create value for our customers, employees, shareholders and society.

Governance

The Board remains focused on ensuring that the UK Corporate Governance Code's Principles are applied. My introduction to the Governance Report on page 61 sets out how the Board has complied with the Principles of the UK Corporate Governance Code 2018 ('the Code'), which were applied throughout the financial year ended

30 June 2024.

Our people

The Board would like to thank all colleagues across McBride for their commitment

to ensuring we meet our customers' requirements, and their relentless drive to innovate and adapt to changing consumer needs. Our executive management and teams have demonstrated an outstanding ability to combine their market knowledge with customer engagement and innovation to consistently deliver high-quality products to market.

The Group has a clear strategy and a direct line of sight for further value creation opportunities. I look forward to our future with confidence as we build on the significant progress of our Compass strategy and the implementation of the Transformation programme to take the business through its next stage of growth.

Jeff Nodland

Chairman

Our Markets

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Raw materials

There has been a general stabilisation in raw material costs, with the overall environment remaining relatively benign. Certain materials, particularly recycled materials and alcohol-based products, are seeing some upward cost pressure.

Response

We continue to maintain a prudent, cost-conscious approach whilst working to develop innovative solutions to mitigate inflationary pressures. Notably, our divisions are focusing

on greater compaction and working to enhance product formulations and concentration levels to preserve and enhance margins.

Sustainability

McBride's customers, consumers and employees continue to place a high level of importance on the sustainability of its manufactured products.

Response

Improving sustainability is a core component of our corporate strategy. We have now set science-based targets for our full supply chain and established a dedicated sustainability team to lead our climate risk initiatives. Our product development teams continue to be committed to sourcing the most appropriate raw materials and, by understanding the carbon footprint of those components, they make the most appropriate product choices. They continue to promote products that can be reused and drive further formulation compaction. As we strive to achieve our science-based targets, we are collaborating actively with our customers, suppliers and employees to implement meaningful actions that further minimise our environmental impact.

Regulation

The regulatory landscape for McBride is rapidly evolving, driven by the EU and UK's push towards Net Zero and other green policies. Whilst these changes may increase operational costs, they also present opportunities to innovate and develop sustainable products that align with legal requirements and meet customer demands.

Response

Compliance with legislation is central to our full service offering to our customers.

We fully support initiatives that enhance safety and sustainability for consumers and the environment.

To achieve this, we invest heavily in our operations and continuously improve our product portfolio, ensuring we not only meet, but exceed, all relevant standards.

Sales channels

Despite the rates of inflation slowing in the second half of the year, cost-of-living pressures remain significant, meaning that shoppers are focused on value. Retailers are demanding extended ranges of everyday value household products to meet demand. There are signs of increasing competitive pressure, with branders beginning to engage in more promotional activity, which can impact on private label share.

Response

We continue to support our retail partners and customers to ensure we deliver market-appropriate and channel-relevant recommendations. Through our innovation and product development, we deliver products at the price

and range that consumers require, and which achieve consistently high-quality cleaning across all product formats.

Consumers

Pressure on consumer discretionary spend means that whilst shoppers have moved towards private label, they also demand high-quality products at value pricing to service their everyday needs.

Response

Through our product development and market expertise, our divisions create award-winning products that offer high-quality and great value products to

the consumer. We can then ensure consumers have clean and hygienic living environments despite the pressure on their spending. We also continue to develop new ranges with a focus on sustainability, providing enhanced cleaning capacity through smaller doses, reformulation and compaction initiatives.

Brand owners

Owners of household cleaning and personal care brands sometimes outsource the manufacture of their products to private label suppliers, such as McBride. This may be because they lack capacity or specific technologies in their own manufacturing facilities, want to bring new innovations to market more quickly, or want to reduce their operational footprint.

Response

Our knowledge, ability, scale, professionalism and reputation for manufacturing high-quality products assures major brand owners that we are the right partner to support their innovation

or strategic outsourcing objectives. Such contracts offer significant growth opportunities, de-risk margins and drive operational efficiencies by increasing asset utilisation.

Our Business Model

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Our purpose

Everyday value cleaning products so every home can be clean and hygienic.

Our vision

McBride will extend its position as the leading European manufacturer and supplier

of private label and contract manufactured everyday value cleaning products, through focused and sustainable divisional strategies.

Our guiding principles

Our values

What sets us apart

Four pillars underpin our strategy:

Market standing

• Wide market coverage/knowledge from pan-European operations
• Reduced risk from customer diversification
• Scale advantages: largest volume player
• Blue-chipreputation

Operational excellence

• Manufacturing excellence
• Supply chain co-ordination and capabilities

Sustainability

• Innovation: specialisation and focus
• Sustainable product expertise: formulation and packaging

Talent

• Experienced management and dedicated employees

How we do it

Customer focus

We sell to retailers and branders their finished products, as well as a small number of McBride brands.

The Group has well-established market positions in all major European economies and supplies its products to a wide range of customers, including virtually all of Europe's leading retailers.

Our sales

Private label 84.5%

Contract manufacturing 12.4%

McBride brands 3.1%

R&D expertise

Best-in-class expertise and know-how in:

• Formulation
• Prototyping
• Sourcing
• Manufacturing
• Packaging

Our Business Model continued

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How we do it continued

Production process

We are end-to-end producers: From:

• Resins
• Base chemicals
• Packaging

To:

• Shelf-ready finished products

Our in-house processes:

• Blow/injection moulding
• Liquid and powder mixing
• Bottle filling
• Capsule forming and filling
• Tablet pressing
• Powder filling

Distribution efficiency

Consolidating the customer requirements via:

McBride warehouse network

Into

Customer distribution hubs

Who we create value for

Our workforce

With our values-based culture, we are committed to creating the best possible working environment where our employees feel included, engaged and can achieve their full potential.

Our suppliers

We believe that our suppliers should have the opportunity to benefit from their relationship with us. Effective supplier relationships allow us to make high-quality everyday value cleaning products.

Our customers

We follow a 'customer focus' approach, building strong, collaborative customer relationships to drive high customer service levels and develop and manufacture innovative new products.

Our shareholders

We work to deliver long-term, sustainable growth of the Group, to provide enhanced shareholder value through our financial performance and focus on long-term value creation.

Our Strategy

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Winning in a growing market

Our strategy remains unchanged: to be the leading value producer of everyday cleaning products, leveraging scale and unrivalled product expertise to deliver a segmented product and customer proposition with a cost-aware sustainability agenda.

The implementation of the Compass operating model has delivered divisional focus, specialism and accountability, underpinned by shared services that deliver economies of scale for the Group. Our divisional structure supports our ambition to expand our position as the leading value label producer of everyday cleaning products and being the preferred partner for our customers.

We achieve this ambition in several ways. We grow and win across all laundry categories. We lead with the largest retailers in the top five economies, growing disproportionately with the discounters. We shall expand our number one status in the UK, France and Italy to Germany and Spain, as well as grow in contract manufacturing, which we are targeting to grow to a

25% share of the Group's revenue.

These targets will be met as we strengthen our customer centricity, from joint value creation to service and quality excellence, and as we maintain the most competitive product portfolio in the sector. Our business Transformation initiatives are driving excellence in core activities, generating £50 million in benefits over five years, while our focused, accountable and expert divisional teams lead a cost-aware,innovation-led sustainability agenda.

Our strategy and targets are clear

• Drive private label market share
• Focus on key growth opportunities:
• • Laundry
  • Germany
  • Spain
• Increase contract manufacturing share of revenue
• Deliver Transformation programme enhancing excellence in core activities
• Explore additional value opportunities

McBride operating model

Our Transformation programme

We support divisional success by leveraging the scale of the Group through effective central teams for purchasing, talent management and other shared services

One McBride

Shared services

Gold programmes

Operating Systems Excellence

• Deployment of SAP S/4HANA Enterprise Resource Planning platform across Europe
• Target first deployment in UK in first half of 2025

Commercial Excellence

• Sales & Marketing training and development
• Commercial processes, new tools and insights

Service Excellence

• Improved, consistent and transparent service
• Demand planning, supply chain planning and inventory optimisation
• Logistics network evolution

Silver programmes

HR Digital Excellence

• Modernisation of core HR platform
• Digitisation of payroll operations

Contract Manufacturing Excellence

• Thought leadership in packaging and product innovation
• Moving from 'fast follower' to 'innovation leader'

Operations & Overheads Excellence

• Production process re-engineering
• Aligning overheads to volume growth

One McBride

Five divisions

Each division has specialist teams embedded in their markets, bringing a unique level of knowledge

and expertise.

Our model means divisions can target different opportunities, initiatives, challenges and improvement options; all reinforcing the need for varying strategies for the different parts of this business.

Our market

• All categories supplied in liquids form
• Regional business
• Innovation focus driven by sustainability
• Private label share gain

Our market

• Convenient and sustainable format
• European business
• High pace of innovation

Hence, the Group continues to be managed as a series of portfolio businesses, each with its own identity, strategy, operating model and role within the Group.

Separate, focused and accountable divisional teams strengthen our leading market position and improve speed and agility in all our activities.

Compass priorities

1. Simplified portfolio, increasing competitiveness
2. Lower cost
3. Enhanced customer proposition
4. Focused growth

Compass priorities

1. Become specialist supplier
2. Be embedded in the industry
3. Accelerate efficient innovation
4. Invest behind right asset base
5. Be more cost competitive

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Compass next phase

• Product sustainability to drive value growth
• Generate value at competitive price
• Build valuable customer relationships

Cost leadership

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Compass next phase

• Lead as the specialist supplier
• Be ever closer to customers and suppliers
• High pace innovation - sustainable and compact
• 'FleXellence'

Product leadership

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