C&C, the drinks group, has today noted that full-year underlying operating profit for the 2024 financial year is expected to be in line with current market expectations.
In the ten-month period to December 2023, C&C’s branded net revenue increased by 6%, while distribution net revenue dropped by 3%.
‘Increasing Confidence’
‘With increasing confidence in the medium-term outlook for the business and its strong cash generation capabilities, the board reaffirms its intention to distribute up to €150 million to shareholders over the next three fiscal years,’ C&C Group declared in a statement.
The group noted that trading over the key Christmas period was resilient, despite some adverse weather conditions in the United Kingdom.
C&C is the owner of the Tennent’s, Magners and Bulmers Ireland brands, Matthew Clark and Bibendum Wine.
‘Mitigating Inflationary Impacts’
The group noted that it will issue full-year FY2024 results in May 2024.
‘While current market conditions remain challenging, mitigating inflationary impacts, improved operating efficiency, business simplification, and gaining customers continue to be the Group’s operating priorities in the medium term,’ C&C noted in its statement.
ERP System Implementation
In October, C&C released results for the six months ended 31 August 2023, which showed that operating profit was €30.5 million therein, down from €53.3 million a year earlier.
C&C noted that this was principally driven by a one-off disruption of the ERP system implementation.
Its net revenue for the six-month period fell by 1.2%, to €872.5 million, from €883.4 million.
Challenges
The company noted in October that operating-environment challenges are expected to persist, with continued cost pressure over 2024, before easing in 2025.
C&C noted that it will then target an increase in branded margins, as it continues to take pricing and cost actions.
