Bulmers cider manufacturer C&C Group plc has released its results for the 12 month period that ended on 28 February 2022.
Financial Data
According to a statement published on CAndCGroupplc.com/news/, during the 12 month period, C&C's net revenue increase of 87.8% to €1,438.1 million; its performance was driven by 207.8% growth in on-trade net revenue; the group had a strong off-trade performance despite the reopening of the on-trade, with net revenues of €376.3 million, which were down 3.4% versus FY2021; operating profit of €47.9 million contributed to free cash inflow of €28.4 million pre-exceptionals, reflecting a free cash flow conversion of 35.6% and significant progress against a medium-term free cash flow conversion target of 65%-75%; operating margins 3.3% in the 12 month period, with the second half of FY2022 being 4.1%; the group managed a challenging inflationary environment during the 12 month period through a combination of its €18 million cost reduction plan, input cost hedging and the implementation of a price increase in November of last year; C&C had net debt of €271.3 million at year end equated to net debt to adjusted EBITDA of 3.4x, within normal covenant levels, and its medium-term leverage ratio target is reiterated at less than 2.0x; the group had strong liquidity at year end of €438.7 million, which positions the group well to execute its strategy; and the group had exceptional credit (pre-tax) of €11.3 million, primarily driven by write back of previously created COVID-19 provisions.
FY2023 To Date
According to the aforementioned statement published on CAndCGroupplc.com/news/, FY2023 has started strongly with net revenue +12% of pre-COVID-19 pandemic (FY2020) levels for the two months to 30 April 2022 and 140% of FY2021.
Statement By C&C CEO
The statement published on CAndCGroupplc.com/news/ included a statement from C&C CEO David Forde that said, "Following a period of unprecedented challenges for the hospitality sector, we are delighted to be back serving our customers and delivering our iconic and much-loved brands to our on-trade and off-trade partners. Encouraged by the reaction and resilience of the industry, we are pleased with how trading has recovered and the subsequent strength of customer and consumer demand, which we believe reflects the enduring importance of the on-trade and the role that it plays in our society.
"FY2022 finished with a robust return of the on-trade, and we are excited for the opportunities ahead. C&C has and will continue to enhance its branded portfolio through increased investment and product development, utilising our system strength to win in cider and strengthen our position in premium beer. Through investment in technology, we are creating a more streamlined and efficient business which will, in turn, deliver an improved customer experience and service.
"Looking forward, we are operating in an evolving and challenging inflationary cost environment and will continue to monitor this closely over FY2023 and beyond. We have already taken action to afford the business a degree of protection, nevertheless we are susceptible to further increases in our cost base which would necessitate further price increases. Despite the current positive sentiment in the hospitality sector post reopening, we are mindful of the pressures being faced by consumers and its potential impact on future demand.
"The group continues to play a key role in the UK and Ireland drinks market and is well positioned, with a market leading platform and a position of financial strength to drive sustainable growth and create long-term returns for our shareholders."
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