McBride PLC (LSE:MCB) shares rose 6.5% to 114.2p after reporting full-year profits ahead of expectations and a stronger balance sheet.
The maker of white-label products for supermarkets produced an adjusted profit before tax of £54.9 million for the year to June, down 1% on a reported basis or up 5% at constant exchange rates.
Full-year sales of £926.5 million were down 0.9% or up 0.7% at constant exchange rates, supported by a 4.3% rise in volumes.
Private label volumes grew by 1.4%, while contract manufacturing volumes were up 48.9%, helped by new long-term contracts.
The company reported a stronger balance sheet, with net debt falling £26 million to £105.2 million and net debt to EBITDA reduced to 1.2x.
Dividends were reinstated with a 3p payout pledged, which CEO Chris Smith said "reflects our confidence in the business's trajectory and our commitment to delivering long-term shareholder value.
"These results demonstrate the strength of our core activities and our normalised financial situation, positioning us well for continued growth and investment."
Analysts at Peel Hunt noted McBride is building a track record of consistent earnings and strong cash flow. Forecasts remain unchanged, though upside potential is seen.