TIDMCCR
Trading Statement
Return to revenue growth and profitability -- ahead of plan
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 issues a trading statement
for the six months ending 31 August 2021 ('H1 FY2022'). This
follows the gradual easing of restrictions and phased reopening of
the hospitality sector across Ireland and the UK during the
period.
FY2022 has delivered a strong return to trading, driven by the
gradual easing of on-trade restrictions since April 2021 and
boosted further by a strong consumer response; summer of good
weather; the European Football Championship and 'staycations'.
Despite restrictions impacting indoor and outdoor hospitality in H1
FY2022, the Group is pleased to report an improved performance for
the first half of the financial year:
-- With indoor and outdoor hospitality open across our core markets for the
last five weeks of H1 FY2022, we were pleased to serve 90% of the
distribution points in August 2021 versus August 2019.
-- Group net revenue1 in H1 FY2022 is expected to be EUR657m, compared with
EUR398m in H1 FY2021 and EUR896m in H1 FY2020 (pre-COVID-19).
-- Operating1,2 profit for H1 FY2022 is expected to be EUR16m, compared to a
loss of EUR12m in H1 FY2021 and a profit of EUR66m in H1 FY2020.
-- Our off-trade channel has continued to perform well; Bulmers growing its
share of cider on an MAT basis versus a year and two years ago3. In
addition, Tennent's has broadly maintained MAT share versus a year ago
and grown share versus two years ago4.
-- Net Debt5 of EUR246m at end of August 2021.
With the gradual easing of restrictions in the UK on-trade from
April 2021, the Group returned to profit and underlying cash
generation in May 2021, demonstrating the inherent strength of
C&C's business model. Trading performance continued to improve
from May 2021 and Irish outdoor hospitality reopened from June
2021. Our key distribution businesses, Matthew Clark and Bibendum,
returned to profitability in June and remained profitable over the
key summer trading period. The Group discontinued the use of
government furlough support schemes in June 2021.
As widely publicised, the UK is experiencing a shortage of heavy
goods vehicle drivers, however, with the Group's distribution
network controlled inhouse, we have been partly insulated and as a
consequence have broadly met customer demand through the peak
summer trading period. We continue to work closely with our
partners to meet the resurgence in demand. The Group is committed
to market leading customer service and is taking steps to create
capacity and continue to fulfil demand, however, we remain vigilant
on the evolving situation.
While there is general upward pressure on input costs and in our
distribution business as we manage industry wide capacity
constraints, our exposure to commodity inflation is largely
mitigated in FY2022 through our long-term supply contracts and
partnerships. We remain on track with the initiatives to deliver
the EUR18 million in annualised cost savings announced in May
2021.
Our Brand and System strength have been enhanced in the first
half with marketing investment in our core brands of Tennent's,
Bulmers and Magners, a key part of our 'Win in Cider' strategy. We
have made progress in combining and simplifying our GB businesses,
aligning our management structure and creating a change programme
for the next 12 months.
David Forde, Chief Executive Officer of C&C, commented:
"Despite sector challenges, our business has shown its inherent
strength and cash generation capability in the first half of
FY2022. As the on-trade has progressively re-opened, we returned to
profitability and worked closely with our customers to meet the
resurgence in consumer demand. We continue to invest in our brands,
most notably with the recent launch of multi-channel advertising
campaigns for our iconic Tennent's, Bulmers and Magners brands. Our
focus remains on building a better business by further developing
our brand and system strength, while continuing to navigate the
near-term capacity constraints our industry faces."
C&C will announce FY2022 first half results on Thursday, 28
October 2021 at which time the Group intends to reinstate
guidance.
Footnotes:
1 H1'22 comparative adjusted for constant currency (H1'21 and
H1'20 translated at H1'22 F/X rates).
2 Before exceptional items.
3 Nielsen Ireland July 2021, 2020 and 2019.
4 IRI to 8 August 2021 Scotland Off Trade.
5 Net debt, including the impact of IFRS 16 Leases, comprises
borrowings (net of issue costs), lease liabilities capitalised less
cash.
Note: Numbers presented are unaudited financial information.
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.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20210915005981/en/
CONTACT:
C&C Group PLC
SOURCE: C&C Group PLC
Copyright Business Wire 2021
(END) Dow Jones Newswires
September 16, 2021 02:00 ET (06:00 GMT)
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