Business
Pre-close Trading Statement
Pre-close Trading Statement.
About this update from C&c Group Plc
[{"type":"text","content":"\n \n Pre-close Trading Statement\n \nC&C Group PLC\n\n \n\n \nC&C Group plc (‘C&C’ or the 'Group’), 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, provides an update on recent trading and profit guidance for the financial year ended 28 February, 2023 (‘FY2023’).\n\n \nC&C expects to report net revenues of approximately €1,685m(i) in FY2023, an increase of 18% on FY2022(ii), with volumes expected to be +4%(i). The Group expects to report a FY2023 operating profit of €84m(i)(iii) for the period compared to a reported operating profit of €48m(iii) in FY2022. This outcome reflects a number of factors, including the previously noted softer than expected Christmas trading and the impact of the various strikes in the UK. In February, the Group commenced a significant technology project in our GB operations, a key step in the digital transformation and optimisation of the business. The implementation phase of the project is taking longer than originally envisaged, with some consequent impact on service and profitability, however, encouragingly service levels have largely returned to normal levels.\n\n \nDespite a challenging trading backdrop, we are pleased with the performance of our core brands, Bulmers and Tennent’s, which in the latest MAT volume data(iv) are both continuing to grow category share.\n\n \nC&C’s balance sheet strength and robust cash generating capabilities are reflected in a significant reduction in net debt(v)(vi) to approximately €150m and a leverage multiple of 1.3x, compared with €271m and 3.4x at the end of FY2022. Given the strength of the balance sheet and cash flow generation, C&C intends to recommence dividend payments following the announcement of its FY2023 results and will evaluate the potential for further capital returns to shareholders in due course.\n\n \nC&C will announce FY2023 full year results on Wednesday 24 May 2023, and will provide a full update on its progress on strategic objectives at that point.\n\n \n \n \n \n (i)\n \n \n \n \n Unaudited financials.\n \n \n \n \n \n \n (ii)\n \n \n \n \n On a constant currency basis.\n \n \n \n \n \n \n (iii)\n \n \n \n \n Before exceptional items.\n \n \n \n \n \n \n (iv)\n \n \n \n \n Bulmer...