Last checked at 16 Mar 2022 07:00
Pre-close Trading Statement
FY2022 finishes with a robust return to trading driven by strong consumer demand
FY2022 Results and Capital Markets Day scheduled for 17 May 2022
Dublin, London | 16 March 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, today provides an update on recent trading performance and profit guidance for the financial year ended 28 February 2022 (‘FY2022’).
C&C outlined in our 7 January 2022 trading update that the operating profit outcome for H2 FY2022 had been affected as result of the renewed government restrictions on the hospitality industry, particularly the key Christmas trading period. Consequently, C&C expects to report a FY2022 operating profit in the range of €45-47m1. In January 2022, restrictions in our core markets of the UK and Ireland were eased and we are pleased to see positive trading in the on-trade. We were back trading with 81% of direct delivered outlets in February 2022 versus February 2020, with corresponding volumes at 68% and momentum building as outlets continue to re-open.
Our focus continues to be on ensuring that we provide market leading service for our brands and partnership brands to our customers as trading recovers. We are operating in an evolving inflationary cost environment, however we are afforded a degree of protection through our successfully executed €18m cost reduction plan, our recent price increases and input cost hedging. Over and above effective management of both operating and input costs, our well invested network and technology-led system continues to provide the platform for C&C to be the pre-eminent brand led drinks distributor in the UK and Ireland.
Throughout the year, we focused on liquidity management and net debt reduction. Underlining our strong balance sheet position, we expect net debt to be approximately €263m1,2 at the end of FY2022 compared with €442m2,3 at the end of FY2021. This significant reduction in net debt, together with an improving business performance, will substantially enhance our financial flexibility and enable C&C to deliver our strategic objectives, to drive growth for C&C and returns for shareholders.
FY2022 Results and Capital Markets Day
FY2022 Results will be announced on the morning of 17 May 2022. Our Capital Markets Day has been reconvened for the afternoon of 17 May 2022, where we look forward to providing the market with further insight into the Group’s strategy, outlining our medium-term targets, capital allocation framework and sustainability agenda.
1 Unaudited financials.
2 Net debt, including the impact of IFRS 16, comprises borrowings (net of issue costs), lease liabilities capitalised less cash.
3 Reported balance sheet date.
ENDS
Contacts
C&C Group plc
Patrick McMahon, Chief Financial Officer
Ewan Robertson, Finance and Investor Relations Director
Email: ewan.robertson@candcgroup.com
FTI Consulting
Jonathan Neilan / Paddy Berkery
Tel: +353 86 231 4135 / +353 86 602 5988
Email: CandCGroup@fticonsulting.com
Novella Communications
Tim Robertson
Tel: +44 203 151 7008
Email: TimR@novella-comms.com
Forward looking statement
This document contains forward looking statements which reflect the Board of Directors’ current views and estimates. The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures, the effects of a pandemic or epidemic or a natural disaster, and regulatory developments. You are cautioned not to place undue reliance on any forward-looking statements. These forward-looking statements are made as of the date of this document. The Company expressly disclaims any obligation or undertaking to publicly update or revise any forward-looking statements other than as required by applicable laws.
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, super-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 under the Matthew Clark, Bibendum, Tennent’s and Bulmers Ireland brands, the Group supplies over 35,000 pubs, bars, restaurants and hotels, and is a key route-to-market for major international beverage companies.
• C&C Group also has a minority investment in the Admiral Taverns tenanted pub group, which owns over 1,600 pubs across England, Scotland and Wales.
C&C Group is a FTSE 250 company headquartered in Dublin and is listed on the London Stock Exchange.
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