Here is a summary of the key points from the trading statement released by C&C Group Plc
Earnings for the first half of the financial year (up to August 31, 2024) met expectations, with net revenues down 3% due to the disposal of the NAB business in Ireland and lower contract brewing volumes.
Underlying operating profit is expected to be between €39 million and €41 million, reflecting the phased rebuild of distribution business profitability.
Tennents and Bulmers performed well, with volume and value share growth for Tennents and Bulmers outperforming the cider market in Ireland.
Premium beer and cider brands, such as Menabrea and Orchard Pig, reported double-digit revenue growth.
The Matthew Clark and Bibendum business recovered strongly, with distribution points up 10% in August compared to the previous year, and is expected to improve distribution margins in the first half of FY2025.
C&C and Budweiser Brewing Group have restructured their trading relationship, with C&C reassuming control of its cider portfolio in Great Britain and AB InBev taking over its beer portfolio in the Off Trade in Ireland from January 1, 2025.
The company remains confident in achieving its operating profit target for the current financial year and progress towards the €100 million goal by FY2027.
The Board intends to distribute at least €150 million to shareholders over three years while maintaining financial leverage. The second tranche of the share buyback program begins on September 9, 2024.
Feargal ORourke has joined the Board as a Non-Executive Director, bringing financial expertise to the company. The recruitment process for a new CEO is also underway.