C&C Group Regulatory News (CCR)

7 Jul 2022 07:00

AGM Trading Update

Dublin, London | 7 July 2022: 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, issues a trading update for the period 1 March 2022 to 30 June 2022 ahead of the Group’s Annual General Meeting (AGM) which will be held later today.

C&C is pleased to report a solid trading performance in early FY2023. Despite the consumer backdrop, net revenues are 6%(iii) ahead of pre COVID-19 levels for the four months to 30 June 2022, as we begin our busy summer trading period. Notwithstanding this, the Group continues to operate in a challenging inflationary environment and remains vigilant on the potential impacts of this on both our cost base and the pressures being faced by consumers, which could impact future demand. We have a significant proportion of our manufacturing input costs fixed for FY2023 and will continue to proactively manage our cost base, while assessing any necessary price increases to recover inflation pressure across the business as the year progresses.

Reflecting the continued recovery in trading and the Group’s inherent cash generative characteristics, net debt to adjusted EBITDA, at 30 June 2022, fell to approximately 2.4x(i)(ii)(iii). This represents a significant improvement from 3.4x reported at 28 February 2022. The Group is on track to exit its waiver period in H2 FY2023, achieve its leverage ratio target of less than 2.0x and assuming current trading conditions continue, return capital to shareholders in due course.

C&C holds its AGM today. Following four years as Chair of C&C Group and 10 years on the Board, Stewart Gilliland is not seeking re-election and will be succeeded by Ralph Findlay, subject to shareholder approval, at the conclusion of the AGM.

Ralph Findlay, Chair designate of C&C Group, commented: "I would like thank Stewart for his commitment and stewardship of C&C, during which time the Group has transformed into the leading final-mile distributor to the on-trade in the UK and Ireland, while navigating the business through the most challenging period in our industry’s history. The Group has iconic brands, a leading distribution network and a strong capital structure to sustain its future growth ambitions. I look forward to playing a role in driving the future success of the business for all our stakeholders including customers, consumers, employees and shareholders.”

ENDS

Notes

Contacts

C&C Group plcPatrick McMahon, Chief Financial OfficerEwan Robertson, Finance and Investor Relations DirectorEmail: ewan.robertson@candcgroup.com

FTI ConsultingJonathan Neilan / Paddy Berkery / Aline OliveiraTel: +353 86 231 4135 / +353 86 6025988 / +353 83 8331644Email: CandCGroup@fticonsulting.com

Novella CommunicationsTim RobertsonTel: +44 203 151 7008Email: 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, 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 FY2022 Annual Report that could cause actual results to differ materially from those anticipated.

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