C&C Group H1 profits surge, warns of 'challenging' H2 outlook

C&C Group said adjusted underlying earnings shot up 132.5% to €70.9m and operating profits surged 254.2% to €54.9m as net revenues increased 35.6% year-on-year and operating margins expanded from 2.3% to 6.1%. Earnings per share rose 284% to 9.6 EU cents.

The FTSE 250-listed group added that its "inherent cash generating capability" had resulted in a free cash inflow of €55.3m pre-exceptional and a related free cash flow conversion of 78.0%, including a non-recurring repayment of €16.1m for tax deferrals.

C&C, which said it intends to recommence a full and final year dividend following the release of its 2023 results, also noted that the macroeconomic and consumer environment remained "difficult", with net revenues for September down 5% compared to the same period in 2021.

Chief executive David Forde said: "FY2023 H2 will provide our first unrestricted Christmas trading period for three years, in addition to the upcoming FIFA World Cup, therefore our focus is on ensuring the highest standards of service and stock availability over this period and beyond.

"However, despite these positive tailwinds, the outlook for H2 is challenging with inflationary pressures on our own margins as well as those of our customers, and the cost of living pressures on the consumer environment in the near term."

As of 0850 BST, C&C shares were down 1.09% at 163.70p.

Reporting by Iain Gilbert at Sharecast.com