Drinks Group C&C has released results for the six months ended 31 August 2023, which show 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
C&C is the leading drinks wholesaler to the hospitality industry in the UK and Ireland, where it operates under the Matthew Clark, Bibendum, Tennent’s and Bulmers Ireland brands.
The company has noted that operating-environment challenges are expected to persist, with continued cost pressure over the next 12 months, 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.
‘Robust Performance’
The company’s premium beer portfolio recorded revenue growth of 23.1%, with volume growth of 16.8%.
C&C also recorded a ‘robust performance’ in Ireland and Scotland.
Market Leader
Bulmers and Tennent’s delivered revenue growth of 9.1%, maintaining their clear market-leading positions.
The drinks company has announced its intention to distribute up to €150 million to shareholders over the next three fiscal years, through dividends and capital returns.
‘Top Priorities’
“We have made significant progress in restoring customer service levels following the ERP system implementation issues in our GB distribution business within our planned time frame,” said Patrick McMahon, C&C group chief executive officer.
“Delivering outstanding service, winning customers, continued business simplification, and improved operating efficiency remain our top priorities and focus for the second half.”
