FY2025 First-Half Trading
Update
Earnings
in line with expectations; underlying Operating Profit of
€39m-€41m, Core Revenues in line
Dublin, London, 9 September 2024: C&C Group plc ('C&C' or the 'Group') announces that
earnings in the first half of the financial year to 31 August 2024
have been in line with expectations, with Net Revenues expected to
be -3%1, reflecting growth in Matthew Clark &
Bibendum, in-line performance across our core and premium
brands, offset by the impact from the disposal of our NAB business
in Ireland, lower contract brewing volumes and softer cider volumes
in GB. Underlying Operating Profit is expected in the range of
€39m-€41m, in line with our expectations, principally reflecting
the phased rebuilding of our Distribution business profitability
following last year's ERP disruption.
Tennent's achieved volume and value
share growth over the latest 12-weeks2, supported by
targeted marketing campaigns around the Euro 2024 tournament and,
despite mixed summer weather, Bulmers outperformed the cider market
in Ireland3. Our Premium beer and cider brands, driven by Menabrea and
Orchard Pig, continued to perform strongly, reporting double digit
revenue growth.
Performance in our Matthew Clark and
Bibendum business has also been encouraging with Net Revenues
expected to be +2%. Recovery from lost distribution customers in
FY2024 has been strong, with distribution points for Matthew Clark
and Bibendum in August +10% compared to August 2023. This growth,
together with the efficiency initiatives implemented in the year to
date, is expected to result in improved distribution margins in H1
FY2025.
Distribution Agreement with Budweiser Brewing
Group
C&C and Budweiser Brewing Group
('BBG'), part of AB InBev, have mutually agreed to restructure
elements of our trading relationship. Effective from 1st January
2025, C&C will reassume control and distribution of the Group's
cider portfolio, including Magners, in Great Britain. On the same
date, AB InBev will assume control and distribution of its beer
portfolio in the Off Trade in the Republic of Ireland. Bringing the
sales, trade marketing and distribution responsibilities in house
will provide both companies with the opportunity to strengthen
their respective brand portfolios and distribution
platforms.
Outlook and Capital Returns
While current market conditions
remain challenging, improving efficiencies, business
simplification, winning customers and brand distribution remain our
top priorities. We remain confident on achieving our operating
profit target for the current financial year and making progress
towards the operating profit target of €100m by FY2027.
The Board reaffirms its intention to
distribute at least €150million to shareholders over three years
while maintaining the Group's financial leverage target of
approximately 1x EBITDA on a pre-IFRS16 basis. The second €15m
tranche of our share buyback programme will commence today, 9
September 2024.
Board and CEO Appointment Process
Since the Annual General Meeting on
15 August 2024, we have been pleased to welcome Feargal O'Rourke as
Non-Executive Director of the Board. Prior to retirement Feargal
was Managing Partner of PwC Ireland and brings his considerable
financial expertise to C&C. As previously announced, we intend
to make a further non-executive appointment to the Board in the
near future. We have also commenced the recruitment process for the
new Chief Executive Officer with the support of executive search
firm Russell Reynolds Associates. A progress update on these
appointments will be provided in due course.
1 On a constant currency basis
2 On-Trade - CGA OPM (BWS) 52 w/e 13/7/2024, Off-Trade - IRI
(Circana) Total GB 52 w/e 13/7/2024.
3
CGA 13 w/e to 30.06.24 - Ireland Total
Cider
ENDS
Contacts
C&C Group plc
Email: investor.relations@candcgroup.ie
Investors, Analysts & Media
FTI
Consulting
Jonathan Neilan / Paddy
Berkery / Niamh O'Brien
Tel: +353 86 231 4135 / +353 86
6025988 / +353 87 707 8379
Email: CandCGroup@fticonsulting.com
About C&C Group plc
C&C Group plc is a leading,
vertically integrated premium drinks company which manufactures,
markets and distributes branded beer, cider, wine, spirits, and
soft drinks across the UK and Ireland.
· C&C Group's portfolio of owned/exclusive brands
include Bulmers, the leading Irish cider brand and Tennent's,
the leading Scottish beer brand; as well as a range of
fast-growing, premium and craft ciders and beers, such as Heverlee,
Menabrea, Five Lamps and Orchard Pig. C&C exports its Magners
and Tennent's brands to over 40 countries worldwide.
· C&C
Group has owned brand and contract manufacturing/packing
operations in Co.Tipperary,
Ireland and Glasgow, Scotland.
·
C&C is the No.1 drinks
distributor to the UK and Ireland hospitality
sectors. Operating through the Matthew Clark, Bibendum,
Tennent's and Bulmers Ireland brands, the Group has a market
leading range, scale and reach including an intimate understanding
of the markets it serves. Together this provides a key
route-to-market for major international beverage companies.
C&C Group plc is an Irish
incorporated FTSE 250 company headquartered
in Dublin and is listed on the London Stock
Exchange.