C&C has delivered a robust performance in Ireland and Scotland for the six months to the 31 August 2023.
Net revenue was broadly in line with the first half of 2023, despite a one-off disruption of the ERP System implementation.
The drinks giant also recorded a strong performance in branded revenues, which increased by 6.9%.
Operating profit for the period amounted to €30.5 million, down by €22.8 million year on year, due primarily to a one-off ERP impact of circa €22 million.
Despite these challenges, the Group’s GB distribution business was breakeven in H1 FY2024.
In the branded business, operating profit was up by 4.6%, to €25.2 million, while branded margins were solid at 14.5%, as pricing actions offset most of the inflationary impacts on the Group’s cost base.
Operating Highlights
Bulmers and Tennent’s delivered revenue growth of 9.1%, maintaining clear market-leading positions, during the period.
C&C's premium beer portfolio recorded revenue growth of 23.1% and volume growth of 16.8%.
'Significant Progress'
Commenting on the results, Patrick McMahon, C&C group chief executive officer, said, “We have made significant progress in restoring customer service levels following the ERP system implementation issues in our GB distribution business within our planned timeframe.
"Delivering outstanding service, winning customers, continued business simplification and improved operating efficiency remain our top priorities and focus for the second half.
"We are also pleased to announce today our intention to distribute up to €150 million to shareholders over the next three fiscal years through dividends and capital returns, while maintaining leverage within our target range of 1.5x to 2.0x.”
Looking Ahead
C&C noted that its operating environment challenges are expected to persist, with continued cost pressure over the next 12 months before some easing in its full year 2025.
The group is at an advanced stage of the CFO recruitment process, and it said that an update will be provided 'in due course'.
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