C&C sees jump in FY profit, revenue despite ‘challenging’ backdrop

In an update for the year to 28 February, the company said it expects to report an 18% year-on-year rise in revenues to around €1.69bn, with volumes up 4%. Meanwhile, operating profit is expected to come in at €84m, up from €48m a year earlier.

"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," it said.

"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."

C&C said it was pleased with the performance of its core brands - Bulmers and Tennent’s - despite a "challenging" backdrop. It pointed out that according to the latest MAT volume data, both are continuing to grow category share.

The group said net debt reduced to around €150 from €271m at the end of FY2022, while the leverage multiple fell to 1.3x from 3.x4.

"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," it said.