C&c Group Plc · LSE:CCR
C&c — H1 FY2024 Earnings Presentation
25 slides from C&c's earnings presentation, 2024
Slide 1: H1 FY2024 Results
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Slide 2: Disclaimer
This presentation is not intended to and does not constitute or form part of any offer, or invitation, or solicitation of any offer to issue, underwrite, subscribe for, or otherwise acquire or dispose of any shares or other securities of the Company in any jurisdiction or an inducement to enter into
Slide 3: H1 FY2024 Takeaways and Dividends and Capital Returns
H1 FY2024 Takeaways Dividends and Capital returns FY2024 H1 EBIT: €30.5m (i) Maintain balance sheet strength c.€22m ERP impact(iii) ■ Maintain leverage (ii) between 1.5x – 2x GB Distribution service levels restored ■ Continue to strengthen and improve quality of balance sheet to optimise OTIF % abov
Slide 4: Trends & Developments
trends & develooments
Slide 5: On Trade outlets and volume share trends, GB & IOI
On Trade Outlets GB & IOI 6mth volume share GB On Trade (change vs 1ya) 140,000 -17,042 (-13.2%) 130,000 128,675 (-5.1%) 120,000 +/- 0bps a -30bpsa 110,000 120,087 119,162 (-1.2%) Rate of 113,026 111,633 decline is Wine Spirits 100,000 slowing 90,000 80,000 70,000 60,000 +10bps +20bps 50,000 a a FY2
Slide 6: Operating Objectives
on Operating Objectives
Slide 7: GB Distribution On Time In Full (OTIF)
GB Distribution On Time In Full (OTIF*) 92% disruption 95% System COVID a a GB OTIF a restrictions a GB OTIF January 23 September 23 lifted Jan/Feb 22 *Calculated OTIF to provide a like-for-like and consistent output 7
Slide 8: System strength provides platform to leverage premium beer growth
System strength provides platform to leverage premium beer growth 50.00% Tennent’s volume share of 40.00% total Scotland On Trade beer 40.2%, up 4.0ppts yoy. Nearest competitor brand 30.00% 20.00% share, 7.8% 10.00% 0.00% Tennent's Nearest Competitor We have three of Top 10 Premium Beer Brands* in S
Slide 9: Bulmers total IOI cider market share
Bulmers total IOI cider market share 59.8% up 70.0% 0.35ppts yoy. Nearest 60.0% 50.0% competitor cider brand 40.0% share, 14.3% 30.0% 20.0% 10.0% 0.0% Bulmers Nearest competitor We have three** of Top 10 Premium Beer Brands in ROI On Trade and all increased volumes +22% volume 12% 10% +16% volume 8%
Slide 10: Performance
Performance © (NERS HRUTE:
Slide 11: Net Revenue, Operating Profit and Adjusted EBITDA
€873m €30.5m €45.9m Net Revenue Operating profit Adjusted EBITDA -1% vs H1’23(1) -43% vs H1’23(1) -34% vs H1’23(1) Branded €174m +7% Branded €25.2m +5% Branded €34.3m +3% Distribution €686m –3% Distribution €5.3m –82% Distribution €11.6m –67% 3.5% €189.8m €106.7m Operating Margins Net Debt (2) Net D
Slide 12: Net revenue bridge: branded +7%, distribution
+7% +7% +8% -4% -20% €'m +100% (19.6) 4.4 6.6 6.9 (27.1) (2.7) 903.0 1.0 883.4 872.5 H1'23 Currency H1'23 CC* IRL: Branded IRL: IRL: Co- GB: Branded GB: GB: Co- H1'24 Distribution pack/other Distribution pack/other Branded net revenues +7%, driven by price/mix +11ppts with volume decline -4ppts Dist
Slide 13: Branded operating profit and Distribution GB operating profit
+5% +6% +4% -9% Branded operating profit +€1.1m despite inflationary pressures. Distribution GB operating profit down €24.2m primarily due to ERP system implementation issues in GB – H1 impact c.€22m**. * Adjusted to be on a constant currency basis and pre-exceptional. 13 ** €22m – Management’s esti
Slide 14: Net Debt / EBITDA
FY23 Net Debt/ EBITDA 1.3x H1’24 Net Debt/ EBITDA 2.1x (Excluding leases 0.9x) (Excluding leases 1.6x) * Net Debt (post IFRS 16 lease liabilities) / Adjusted EBITDA which is earnings before exceptional items, finance income, 14 finance expense, tax, depreciation, amortisation and share of equity acc
Slide 15: Objectives
jeans: Objectives ,
Slide 16: Brands, Distribution, System, Sustainability/ESG objectives
SUSTAINABILITY/ESG BRANDS DISTRIBUTION SYSTEM MSCI ‘AA’ rating Reducing carbon footprint Industry leading climate Steady state operating margin credentials target of 4% Return on Capital Employed >25% for Distribution business (normalized) Free cash flow conversion Intention to distribute €150m to L
Slide 17: Appendix
Appendix
Slide 18: Distribution margin weighed down by one-off ERP impact
Dist. Margin 14.5% weighed down by Branded margin one-off ERP impact 16.0% 14.0% 12.0% 14.8% 14.5% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% H1'23 H1'24 Branded margin down 0.3ppts driven by Bulmers production as pricing actions largely mitigate inflationary cost pressures. Distribution margin flat in Ireland
Slide 19: Branded margins
BRANDED MARGINS: Increased input costs have weighted heavily on branded margins. FY24 expected to be the last year of increased input costs. *Excluding exceptional items. ** Includes some management estimates 19
Slide 20: FCF conversion medium-term range of 65%-75%
EBITDA impacted by ERP disruption & Temporary investment in Working strikes in H2 FY23 Capital linked to ERP disruption FCF Conversion medium-term range of 65% - 75%. 20 * Excluding exceptional items.
Slide 21: H1 financial outcome negatively impacted by ERP issues in GB
€'m H1'24 H1'23 H1'24 vs H1'24 vs H1'23 H1'23 % Net revenue (1) 872.5 883.4 (10.9) -1.2% • H1 Financial outcome negatively Adjusted EBITDA (1) (2) 45.9 69.0 (23.1) -33.5% impacted by ERP issues in GB – Operating profit (1) (2) 30.5 53.3 (22.8) -42.8% c.€22m(7) operating profit impact in H1. (1) (2)
Slide 22: Great Britain results
GREAT BRITAIN €'m H1'24 H1'23 H1'24 vs H1'24 vs Constant currency H1'23 H1'23 % Net Revenue 710.7 733.6 (22.9) -3.1% of which Branded 111.5 104.6 6.9 6.6% - Price/mix impact 10.8% - Volume impact -4.2% of which Distribution 588.5 615.6 (27.1) -4.4% - Price/mix impact -4.4% - Volume impact 0.0% of wh
Slide 23: Ireland results
IRELAND €'m H1'24 H1'23 H1'24 vs H1'24 vs Constant currency H1'23 H1'23 % Net Revenue 161.8 149.8 12.0 8.0% of which Branded 62.8 58.4 4.4 7.5% - Price/mix impact 12.3% - Volume impact -4.8% of which Distribution 97.0 90.4 6.6 7.3% - Price/mix impact 10.6% - Volume impact -3.3% of which Co-pack/Othe
Slide 24: Branded net revenue bridge by brand
€'m 5.2 (4.7) 2.4 6.2 (2.9) 0.0 138.6 132.4 H1'23 CC* Tennent's volume Tennent's Bulmers volume Bulmers price/mix Magners volume Magners H1'24 price/mix price/mix *Adjusted for constant currency 24
Slide 25: Carbon footprint, sustainable sourcing, working in our community
Carbon footprint • €1.4m investment in a new Heat Pump project at Clonmel, reducing the carbon footprint of the site by c.40%. • Group’s greenhouse gas reduction targets formally validated by the Science Based Targets initiative (SBTi). Sustainable sourcing • To achieve our Scope 3 emission reductio