C&C hails solid start to year but warns over impact of inflation

Drinks company C&C reported a solid start to the year on Thursday but struck a cautious note on the potential impact of inflation.

In an update for the period from 1 March to 30 June ahead of its annual meeting, the Bulmers and Magners maker hailed a "solid" trading performance despite the consumer backdrop, with revenues 6% ahead of pre-Covid 2019 levels.

"Notwithstanding this, the group continues to operate in a challenging inflationary environment and remains vigilant on the potential impacts of this on both our cost base and the pressures being faced by consumers, which could impact future demand," it said.

"We have a significant proportion of our manufacturing input costs fixed for FY2023 and will continue to proactively manage our cost base, while assessing any necessary price increases to recover inflation pressure across the business as the year progresses."

C&C said net debt to adjusted EBITDA as at the end of June fell to around 2.4x. This is a significant improvement on the 3.4x reported at 28 February, it said.

The company also said that after four years as chair and 10 years on the board, Stewart Gilliland is not seeking re-election and will be succeeded by Ralph Findlay.

Chair designate Findlay said: "I would like thank Stewart for his commitment and stewardship of C&C, during which time the group has transformed into the leading final-mile distributor to the on-trade in the UK and Ireland, while navigating the business through the most challenging period in our industry’s history.

"The group has iconic brands, a leading distribution network and a strong capital structure to sustain its future growth ambitions. I look forward to playing a role in driving the future success of the business for all our stakeholders including customers, consumers, employees and shareholders."