Pre-close Trading Statement
Updated : 07:00
C&C Group plc (‘C&C’ or the 'Group’), a leading, vertically integrated premium drinks company which manufactures, markets and distributes branded beer, cider, wine, spirits and soft drinks across the UK and Ireland, provides an update on recent trading and profit guidance for the financial year ended 28 February, 2023 (‘FY2023’).
C&C expects to report net revenues of approximately €1,685m(i) in FY2023, an increase of 18% on FY2022(ii), with volumes expected to be +4%(i). The Group expects to report a FY2023 operating profit of €84m(i)(iii) for the period compared to a reported operating profit of €48m(iii) in FY2022. This outcome reflects a number of factors, including the previously noted softer than expected Christmas trading and the impact of the various strikes in the UK. In February, the Group commenced a significant technology project in our GB operations, a key step in the digital transformation and optimisation of the business. The implementation phase of the project is taking longer than originally envisaged, with some consequent impact on service and profitability, however, encouragingly service levels have largely returned to normal levels.
Despite a challenging trading backdrop, we are pleased with the performance of our core brands, Bulmers and Tennent’s, which in the latest MAT volume data(iv) are both continuing to grow category share.
C&C’s balance sheet strength and robust cash generating capabilities are reflected in a significant reduction in net debt(v)(vi) to approximately €150m and a leverage multiple of 1.3x, compared with €271m and 3.4x at the end of FY2022. Given the strength of the balance sheet and cash flow generation, C&C intends to recommence dividend payments following the announcement of its FY2023 results and will evaluate the potential for further capital returns to shareholders in due course.
C&C will announce FY2023 full year results on Wednesday 24 May 2023, and will provide a full update on its progress on strategic objectives at that point.
(i) | Unaudited financials. | ||
(ii) | On a constant currency basis. | ||
(iii) | Before exceptional items. | ||
(iv) | Bulmers: Nielsen Off-Trade 29.01.23; CGA On-Trade 31.01.23. | ||
| Tennent’s: IRI Total Scotland Last 52 wks to 23.01.23; CGA On-Trade data to 28.01.23. | ||
(v) | Net debt, including the impact of IFRS 16, comprises borrowings (net of issue costs), lease liabilities capitalised less cash. | ||
(vi) | At reported balance sheet date. |
ENDS
Contacts
C&C Group plc
Patrick McMahon, Chief Financial Officer
Ewan Robertson, Finance and Investor Relations Director
Email: ewan.robertson@candcgroup.com
Riona Heffernan, Group Finance Director
Email: riona.heffernan@candcgroup.com
UK & International Media
Richard Hayhoe
Email: richard.hayhoe@candcgroup.com
Investors, Analysts & Irish Media
FTI Consulting
Jonathan Neilan / Paddy Berkery / Aline Oliveira
Tel: +353 86 231 4135 / +353 86 6025988 / +353 83 8331644
Email: CandCGroup@fticonsulting.com
About C&C Group plc
C&C Group plc is a leading, vertically integrated premium drinks company which manufactures, markets and distributes branded beer, cider, wine, spirits, and soft drinks across the UK and Ireland.
- C&C Group’s portfolio of owned/exclusive brands include: Bulmers, the leading Irish cider brand; Tennent’s, the leading Scottish beer brand; Magners the premium international cider brand; as well as a range of fast-growing, premium and craft ciders and beers, such as Heverlee, Menabrea, Five Lamps and Orchard Pig. C&C exports its Magners and Tennent’s brands to over 40 countries worldwide.
- C&C Group has owned brand and contract manufacturing/packing operations in Co.Tipperary, Ireland and Glasgow, Scotland.
- C&C is the No.1 drinks distributor to the UK and Ireland hospitality sectors. Operating through the Matthew Clark, Bibendum, Tennent’s and Bulmers Ireland brands, the Group has a market leading range, scale and reach including an intimate understanding of the markets it serves. Together this provides a key route-to-market for major international beverage companies.
C&C Group is a FTSE 250 company headquartered in Dublin and is listed on the London Stock Exchange.
Note regarding forward-looking statements
This announcement includes forward-looking statements, including statements concerning current expectations about future financial performance and economic and market conditions which C&C believes are reasonable. However, these statements are neither promises nor guarantees, but are subject to risks and uncertainties, including those factors discussed in our FY2022 Annual Report that could cause actual results to differ materially from those anticipated.
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