C&C Group primed for a return to growth, despite ‘challenges’
C&C Group has revealed that, despite a “challenging” trading backdrop, its core brands Bulmers and Tennent’s have continued to grow.
In an update for the financial year ended 28 February 2023, the drinks distributor and manufacturer forecast net revenues of approximately €1,685m (£1,489m), with volumes expected to be up 4%.
C&C Group stated that it anticipates that its full year 2023 results will see operating profit of €84m (£74.3m) compared to its reported operating profit of €48m (£42.4m) in 2022.
In its pre-close trading statement, the company noted how it had seen “softer than expected Christmas trading” and had also felt “the impact of the various strikes in the UK” but added that, despite this, “encouragingly, service levels have largely returned to normal levels”.
In its statement, it said: “Despite a challenging trading backdrop, we are pleased with the performance of our core brands, Bulmers and Tennent’s, which in the latest moving annual target (MAT) volume data are both continuing to grow category share.”
In February, the C&C Group began a technology project in our UK operations in an effort to make a digital transformation to optimise its business and noted that “the implementation phase of the project is taking longer than originally envisaged, with some consequent impact on service and profitability” but revealed that “encouragingly service levels have largely returned to normal levels”.
The company added: “Given the strength of the balance sheet and cash flow generation, C&C intends to recommence dividend payments following the announcement of its full year 2023 results and will evaluate the potential for further capital returns to shareholders in due course.”
C&C Group is set to announce its 2023 full year results on 24 May 2023, where it intends to also additionally provide a full update on its progress on strategic objectives at that point.
Last November, C&C Group announced a partnership with CBD drinks brand Trip in a bid to grow the offering of CBD drinks in the UK market with a particular focus on the on-trade.