C&C Group H1 revenues rise, consumer spending squeeze slows on-trade momentum

C&C stated that in the six months ended 31 August, net revenues were predicted to be roughly €900.0m, broadly in line with 2019's pre-Covid-19 comparator. Operating profits were seen markedly higher than the prior year's €16.0m figure at between €52.0m and €55.0m.

However, while C&C said trading through the first half had seen demand return "robustly" at the start of the period, the company witnessed a slowdown in on-trade momentum over the second quarter as a result of the impact of inflation on discretionary consumer spending.

The FTSE 250-listed group added that it expects to report a net debt to adjusted underlying earnings ratio of approximately 1.5x, reflecting the benefit of €43.0m in proceeds from the first two tranches from the sale of its interest in Admiral Taverns, as well as "good cash generation" from the business over the half.

"As a consequence of the group's balance sheet strength and strong cash flow generating capability, it is the board’s intention to review the potential return of capital to shareholders, including dividends, in H2 FY2023," said C&C.

As of 0820 BST, C&C shares were down 4.54% at 166.0p.

Reporting by Iain Gilbert at Sharecast.com