Last checked at 14 Sep 2022 07:00
H1 pre-close trading statement
H1 FY2023 net revenues +35% on prior year with expected operating profit range of €52-55m
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 statement for the six-month period 1 March 2022 to 31 August 2022 (‘H1 FY2023’).
In the six months to 31 August 2022, C&C expects to deliver net revenues of c.€900m(iii), approximately +35% on the same period last year and broadly in line with the comparable period pre COVID-19 (H1 FY2020). Corresponding operating profit for H1 FY2023 is expected to be in the range of €52-55m(iii)(iv), compared to €16m(v) in the prior year and €64m(v) in H1 FY2020. Trading through H1 FY2023 saw demand return robustly at the start of the period, however, consistent with the wider market and the impact of inflation on discretionary consumer spending, the Group has seen a slowdown in on-trade momentum over Q2 FY2023.
The Group is pleased to report that it expects net debt to adjusted EBITDA of approximately 1.5x(i)(ii)(iii) as at 31 August 2022, achieving its previously stated target. This further reduction in leverage multiple reflects the benefit of €43m proceeds from the first two tranches of three equal tranches from the sale of the Group’s interest in Admiral Taverns, in addition to good cash generation from the business over H1 FY2023. As a consequence of the Group’s balance sheet strength and strong cash flow generating capability, it is the Board’s intention to review the potential return of capital to shareholders, including dividends, in H2 FY2023.
C&C will announce H1 FY2023 results on Thursday, 27 October 2022.
ENDS
Notes
Adjusted EBITDA is 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.Unaudited financials.Before exceptional items.Reported numbers.Contacts
C&C Group plcPatrick McMahon, Chief Financial OfficerEwan Robertson, Finance and Investor Relations DirectorEmail: ewan.robertson@candcgroup.com
UK & International MediaRichard HayhoeEmail: richard.hayhoe@candcgroup.com
Investors, Analysts & Irish MediaFTI ConsultingJonathan Neilan / Paddy Berkery / Aline OliveiraTel: +353 86 231 4135 / +353 86 6025988 / +353 83 8331644Email: CandCGroup@fticonsulting.com
About C&C Group plcC&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 statementsThis 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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