Mcbride (MCB): Middle East input cost inflation
This situation live
MCB Mcbride
2 Apr 2026 · Elevated costs from April; surcharges notified · −3% until the next step
Consequently, the Group has already informed all customers about temporary price adjustments, or surcharges to current pricing, to recover these higher, beyond our control, cost impacts from the Middl
12 Jun 2026 · Costs above expectations; second price recovery phase · +38% until the next step
The cumulative impact on input costs has exceeded our original expectations due to the continuing and prolonged period of the conflict, which has required a second phase of price recovery actions.
15 Sep 2026 · Q4 FY26 hit absorbed; Q1 FY27 lag expected · −8% since
The Group currently expects margins to normalise from the second quarter of the 2027 financial year.
Middle East input cost inflation
Q4 FY26 hit absorbed; Q1 FY27 lag expected
Next: margins to normalise from Q2 FY27, subject to materials pricing
Every step · 3
- 2 Apr 2026 Elevated costs from April; surcharges notified – Consequently, the Group has already informed all customers about temporary price adjustments, or surcharges to current pricing, to recover these higher,... ↗
- 12 Jun 2026 Costs above expectations; second price recovery phase – The cumulative impact on input costs has exceeded our original expectations due to the continuing and prolonged period of the conflict, which has required a... ↗
- 15 Sep 2026 Q4 FY26 hit absorbed; Q1 FY27 lag expected – The Group currently expects margins to normalise from the second quarter of the 2027 financial year. ↗
What is happening
Mcbride: Middle East input cost inflation – Q4 FY26 hit absorbed; Q1 FY27 lag expected. ['Q4 FY26 hit absorbed; Q1 FY27 lag expected']
- In short
- From April 2026 the Middle East conflict raised petrochemical, energy, packaging and haulage costs. On 12 Jun 2026 FY26 and FY27 adjusted EBITA was guided 5-10% below consensus. FY26 results on 15 Sep 2026 show adjusted operating profit of £59.0m (2025: £66.1m) on the Q4 margin lag. Further price rises are increasingly likely and Q1 FY27 lag is expected.
- Announced
- 2 Apr 2026 · Elevated costs from April; surcharges notified
- Latest
- 15 Sep 2026 · Q4 FY26 hit absorbed; Q1 FY27 lag expected
- Consensus
- FY26 £64.2m; FY27 £70.6m (Group-compiled adjusted EBITA)
- Timing of impact
- Concentrated in Q4 FY26 and Q1 FY27
- Exposure
- Limited to less than a full 3-month cost impact
- Recovery
- Three-month pricing approach; further price rises increasingly likely
- Normalisation
- Back on track for FY27 heading into Q2 FY27 and beyond
- FY26 result
- Adjusted operating profit £59.0m vs £66.1m; adjusted EBITDA margin 8.6% vs 9.3%
- Timing
- Impact in Q4 FY26 and early FY27; margins to normalise from Q2 FY27
- Net debt
- £122.8m, 1.5x adjusted EBITDA (2025: 1.2x)
What comes next
margins to normalise from Q2 FY27, subject to materials pricing.
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