Trading Statement

Trading Statement

FY2022 Q4 trading conditions impacted by renewed COVID-19 restrictions

Dublin, London | 7 January 2022: 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, today provides an update on trading performance in the period following our H1 FY2022 results announced on 28 October 2021.

In late October 2021 the Group indicated that, assuming current trading conditions prevailed, FY2022 Operating Profit was expected to be in the range of €50-€55m. Trading in Q3 (September to November), was modestly ahead of expectation and the stated guidance, reflecting a number of factors as detailed below.

• Positive consumer sentiment and the return of customers to on-trade hospitality, driving increased profit and cash generation in the Q3, demonstrating the inherent strength of C&C’s business model;
• Continued execution of our cost reduction programme to deliver €18m of savings in FY2022;
• Implementation of a price increase to manage inflationary cost pressures; and
• Effective management of the well-publicised UK supply chain disruption.

In December 2021, trading conditions for our on-trade business were significantly impacted by renewed government restrictions across the UK and Ireland. In the month of December, the key festive trading period, C&C traded directly with 81% of on-trade outlets vs FY2020, delivering 64% of the volume against an expectation of 90% and 90% respectively. While December’s performance was consequently behind expectation, the Group generated a modest profit for the month.

The operating profit outcome for the H2 FY2022 period will be affected by the nature, extent and duration of government restrictions. Consequently, C&C will provide an updated operating profit range in its FY2022 pre close trading statement in March.

The Group has a strong capital structure which provides more than adequate liquidity to support its current and expected business needs, together with its strong free cash flow generation and conversion characteristics. As the preeminent brand led drinks distributor in the UK and Ireland, we have demonstrated our ability to effectively service demand during this period. We continue to drive efficiencies throughout our business in the form of permanent operating cost reduction.

Update on Capital Markets Day

Prioritising the safety and well-being of all stakeholders, focusing on our business operations, and supporting our customers whilst fully complying with government and public health advice, has led the Group to make the decision to postpone its Capital Markets Day scheduled for 19 January 2022 in London. We will reconvene at the earliest practicable date, when we can safely accommodate in-person attendance to meet with analysts and investors.

ENDS

Contacts

C&C Group plc
Patrick McMahon, Chief Financial Officer
Ewan Robertson, Finance and Investor Relations Director
Email: ewan.robertson@candcgroup.com

FTI Consulting
Jonathan Neilan / Paddy Berkery
Tel: +353 86 231 4135 / +353 86 602 5988
Email: CandCGroup@fticonsulting.com

Novella Communications
Tim Robertson
Tel: +44 203 151 7008
Email: TimR@novella-comms.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, super-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 under the Matthew Clark, Bibendum, Tennent’s and Bulmers Ireland brands, the Group supplies over 35,000 pubs, bars, restaurants and hotels, and is a key route-to-market for major international beverage companies.

• C&C Group also has a minority investment in the Admiral Taverns tenanted pub group, which owns over 1,600 pubs across England, Scotland and Wales.

C&C Group is a FTSE 250 company headquartered in Dublin and is listed on the London Stock Exchange.

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