C&C Group Share News (CCR)

(Sharecast News) - Drinks manufacturer C&C Group said on Thursday that it has been encouraged by the way trading has recovered since the gradual reopening in April and that it recorded a "modest" trading profit in May.

In an update ahead of its annual general meeting, the company - which owns the Bulmers and Magners brands, among others - said that in the week ending Sunday 27 June, it delivered to 82% of outlets in the comparative week in 2019.

"Given social distancing and indoor restrictions remain in place, volume throughput is adversely impacted through the customers that are currently operating," it said. "Nevertheless, we are encouraged by trading in recent weeks, with good weather aiding outdoor trading over the period."

C&C said that following the progressive easing of Covid-related restrictions since April and the partial recovery in the on-trade, it recorded a modest trading profit in May, with further improvement in June.

Chief executive David Forde said: "Despite restrictions still in place and confirmed delays to full reopening, we remain cautiously optimistic about the gradual recovery of the hospitality sector in our core markets of the UK and Ireland, and we look forward to continuing to support our customers as restrictions are removed.

"As we navigate through this period, our focus is to continue to build and develop our brand and system strength, which underpins C&C's position as the leading brand-led distributor in the UK and Irish drinks market. Our recent successful capital raise has strengthened the balance sheet and positions the group to take advantage of opportunities to strengthen and grow our business as we return to a more normalised trading environment."