Business
Statement re COVID-19 Update
Statement re COVID-19 Update.
About this update from C&c Group Plc
[{"type":"text","content":"\n \nStatement re COVID-19 Update\n\nC&C Group PLC\n\n \n \n \n COVID-19 Update \n \n \n Dublin, London | 20 March 2020: C&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, today provides an update in light of the COVID-19 pandemic.\n\n \n Health and Safety\n \n \nOur priority is protecting the health and wellbeing of our people, customers, suppliers, business partners and community. We are continuously monitoring the advice provided by the health authorities and in line with that guidance, the Group has implemented an extensive range of measures to provide the safest environment we can for our stakeholders.\n\n \nThe Group's supply chain and production network remains fully operational and we remain committed to supporting the trade.\n\n \n Trading Conditions\n \n \nSince our FY20 Trading Update was issued earlier this month, market conditions have deteriorated and it is now clear that COVID-19 will have a material impact on Group performance in the current financial year (‘FY21’).\n\n \nGiven the ongoing uncertainty, we are unable to accurately quantify the expected impact of COVID-19 on our financial and trading performance at this stage. However we expect a material reduction to our prior expectations for FY21. The scale of this reduction will depend upon how the situation develops, over what timeframe, and the impact of further measures implemented by the Irish and UK Governments.\n\n \nWe are committed to ensuring our market leading positions are preserved and with the obvious on-trade disruption we have reallocated additional resources behind our core brands’ off-trade channels, where we continue to perform strongly.\n\n \n Operational Actions and Liquidity\n \n \nWe are working proactively to maximise cash, maintain a strong liquidity position and protect profits. We have a largely flexible cost base, a supportive banking syndicate and have taken the following actions to date:\n\n \n- Drawn down our full revolving credit facility (‘RCF’) and are working to ensure further credit is available should it be required.\n\n \n- Significantly reduced our capital expenditure.\n\n \n- Reducing marketing spend and other costs.\n\n \n- Prudent and vigila...