TIDMCCR
FY2024 H1 pre-close Trading Statement
H1 operating profit expected to be in the range of EUR29m to
EUR31m; service levels restored
C&C Group plc ('C&C' or the 'Group') today issues a
trading statement for the six-month period 1 March 2023 to 31
August 2023 ('H1').
In the six months to 31 August 2023, C&C expects to deliver
net revenue of c.EUR870m(i) , which is down c.1%(iv) on the
comparable prior year period. Operating profit for H1 is expected
to be in the range of EUR29-EUR31m(i) and includes the significant
majority of the one-off profit impact associated with Enterprise
Resource Planning ("ERP") system implementation disruption in the
Group's GB distribution business, previously communicated on 19 May
2023.
Good progress has been made in resolving the ERP system
implementation issues in the Group's GB distribution business in
line with internal expectations. On Time in Full ('OTIF') delivery
metrics have returned to pre-ERP implementation levels.
Trading in H1 for our own brands in Ireland and Scotland was
encouraging, with Net Sales Revenue for our branded business up
c.6%(i) for the period. Trading at the start of H1 benefited from
good weather, particularly in June, however poor weather in July
and August combined with cost-of-living pressures, particularly in
GB, resulted in a slowdown in the latter months of the period.
The Group's leverage at the end of H1 is expected to be 2.1x(i)
on a post IFRS16 basis(ii) and 1.6x(i) on a pre-IFRS 16 basis(iii)
. As previously guided, H1 leverage(ii) is marginally higher than
our target range, due to the ERP system implementation issues,
however we reaffirm our expectation that leverage(ii) will be
within the Group's stated range of 1.5x to 2x at the end of the
financial year in February 2024. In addition to the reinstatement
of the dividend earlier this year the Board continues to evaluate
other forms of capital returns.
The Group's process to recruit a new Group Chief Financial
Officer is ongoing, in conjunction with an independent executive
search firm, and an update will be provided in due course.
C&C will announce H1 results on Thursday, 26 October
2023.
Patrick McMahon, Group Chief Executive Officer, commented: "Set
against a difficult market backdrop, we are pleased with the
strength of the performance of our branded businesses in Ireland
and Scotland in the period. We are particularly pleased with the
progress we have made in restoring customer service levels
following the ERP system implementation issues in our GB
distribution business within our planned timeframe. Delivering
outstanding service, winning back customers, continued business
simplification and improved operating efficiency remain our top
priorities and focus for the second half."
This announcement is made in accordance with Listing Rule 9.6.11
and there is no further information to be disclosed pursuant to
Listing Rule 9.6.13.
(i) Unaudited financials.
(ii) Leverage is defined as net debt to earnings before
exceptional items, finance income, finance expense, tax,
depreciation, amortisation and share of equity accounted
investments profit after tax. Net debt comprises borrowings (net of
issue costs), lease liabilities capitalised less cash.
(iii) Leverage on a pre-IFRS 16 basis is Leverage excluding
leases.
(iv) On a constant currency basis.
ENDS
Contacts
C&C Group plc
Riona Heffernan, Group Finance & Investor Relations
Director
Email: riona.heffernan@candcgroup.com
UK & International Media
Richard Hayhoe
Email: richard.hayhoe@candcgroup.com
Investors, Analysts & Irish Media
FTI Consulting
Jonathan Neilan / Paddy Berkery / Aline Oliveira
Tel: +353 86 231 4135 / +353 86 602 5988 / +353 83 833 1644
Email: CandCGroup@fticonsulting.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, 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 through the Matthew Clark, Bibendum, Tennent's and
Bulmers Ireland brands, the Group has a market leading range, scale and
reach including an intimate understanding of the markets it serves.
Together this provides a key route-to-market for major international
beverage companies.
C&C Group is a FTSE 250 company headquartered in Dublin and
is listed on the London Stock Exchange.
Note regarding forward-looking statements
This announcement includes forward-looking statements, including
statements concerning current expectations about future financial
performance and economic and market conditions which C&C
believes are reasonable. However, these statements are neither
promises nor guarantees, but are subject to risks and
uncertainties, including those factors discussed in our FY2023
Annual Report that could cause actual results to differ materially
from those anticipated.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20230918704903/en/
CONTACT:
C&C Group PLC
SOURCE: C&C Group PLC
Copyright Business Wire 2023
(END) Dow Jones Newswires
September 19, 2023 02:00 ET (06:00 GMT)
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