C&c Group Plc · LSE:CCR
C&c — FY2024 Earnings Presentation
24 slides from C&c's earnings presentation, June 2024
Slide 1: FY2024 Analyst & Investor Presentation
C&C Group FY2024 Analyst & Investor Presentation June ’24 1
Slide 2: Disclaimer
Disclaimer C&C Group 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 C&C Group plc (the "Group"), in any juris
Slide 3: FY2024 Highlights agenda
C&C Group FY2024 Highlights Strategy Overview & Market Dynamics Business Performance Financial Performance Closing Summary / Investment Thesis Q&A 3
Slide 4: FY2024 | Introduction
FY2024 | Introduction FY2024 performance in line with expectation and affirmation of C&C Group €150m capital return plans Management changes announced do not impact current performance 1 or strategy 2 New Exco in place to implement strategy and is focused on delivery Key new finance personnel appoin
Slide 5: FY2024 | A reset year for the business
FY2024 | A reset year for the business C&C Group Highlights Enablers Solid brand performance, net Strong free-cashflow revenues -1.5% vs PY* generation enabling disciplined capital allocation New executive leadership team C&C share of GB on-trade drinks Business Simplification (B.W.S) back in growth
Slide 6: Strategy Overview
C&C Group | Strategy Overview Market leading portfolio of owned and Unrivalled drinks DISTRIBUTION business C&C Group agency BRAND assets across the UK & Ireland Maintain Tennent’s and Bulmers No1 positions UK Distributor of first choice in Scotland and Ireland Target On-Trade outlet growth Premium
Slide 7: Market Dynamics | GB On-Trade
Market Dynamics | GB On-Trade C&C Group Growing share post-ERP disruption in a challenged market Total GB On-Trade Market Volume Share Growth by Category C&C GB On-Trade BWS share has returned to growth(ii) Share of BWS Volume Growth vs PY -0.1% Wine -0.2% Spirits -0.1% RTDs Cider +0.1% Beer +0.4% S
Slide 8: Brand Story | Tennent's
Brand Story | Tennent’s Tennent’s EBIT represents c.50% of Branded EBIT C&C Group FY2024 FY2024 Beer Share FY2024 Beer Share Brand index Net-revenue On-Trade Off-Trade +26% €123.0m 38.2% (ii) 21.9% (iii) vs prior year (iv) delivering the brand’s highest +12% vs PY* (0.1) ppts vs PY +0.3 ppts vs PY e
Slide 9: Brand Story | Bulmers
Brand Story | Bulmers Bulmers EBIT represents c.35% of Branded EBIT C&C Group FY2024 FY2024 Cider FY2024 Cider In the On-Trade, Share Share Net-revenue On-Trade Off-Trade Bulmers is €66.4m 3 times 61.6% (ii) 58.2% (iii) the size of the +8% vs PY* (0.4) ppts vs PY +0.8 ppts vs PY nearest competitor N
Slide 10: Brand Story | Premium Beer & Cider
Brand Story | Premium Beer & Cider Committed brand investment delivering sustained growth C&C Group FY2024 FY2024 Net-revenue Portfolio provides 9% Near-term target, €27.1m exposure to exciting of Branded Net 15% growth market Revenues +19% vs PY* of Branded NSV +1 ppts vs PY Net-revenues +22% vs pr
Slide 11: Distribution
Distribution C&C Group Distribution EBIT represents 26% of total Group EBIT FY2024 Volume growth GB Net Promoter Matthew Clark Net-revenue +2% Score: 8.7 FY2025 Q1 customer €1,319m Price/Mix growth distribution points (3%) vs PY* (4%) (+15.6 vs 2022) +5% vs PY GB OTIF service now ahead of historic l
Slide 12: Financial Performance
C&C Group Financial Performance 12
Slide 13: Headline Financials
Headline Financials ERP disruption weighs on full-year performance however H2 exit rate underscores confidence in future outlook C&C Group FY2024 FY2023 vs FY2023 €m (Constant Currency) Net Revenue 1,652 1,678 (26) Adjusted EBITDA 94 116 (22) * Operating Profit before Exceptional Items 60 83 (23) Op
Slide 14: Net Revenue Bridge
Net Revenue Bridge FY2024: Branded Net Revenue +4%; Distribution -2% impacted by ERP in GB (Distribution Net Revenue -3% H1, -1% H2) C&C Group €m 1,710 1,700 10 1,690 13 8 1,680 43 1,670 1,686 1,660 1,678 6 1,650 1,652 1,640 FY23 Currency FY23 CC* IRL: Distribution GB: Branded GB: Distribution Other
Slide 15: Operating Profit Bridge
Operating Profit Bridge* FY2024: Excluding ERP disruption impact, solid like for like performance across the Group C&C Group €m 95 90 5 85 c. €10m 3 attributable to lost 1 customers 80 75 30 70 83 82 65 60 55 60 50 FY23 Currency FY23 CC* IRL: Distribution GB: Branded GB: Distribution FY24 15 Operati
Slide 16: Exceptional Items & Prior Year Adjustments
Exceptional Items & Prior Year Adjustments C&C Group Exceptional items ■ FY24 €150m of which c.€130m is non-cash ■ Goodwill impairment €125m principally reflecting Magners ■ Other key items ERP €10m and Restructuring €8m ■ FY23 exceptional recognition of onerous apple contracts €12m Prior Year Adjus
Slide 17: Future Margin Build – building blocks
Future Margin Build – “building blocks” Branded EBIT % C&C Group Target >18% MAINTAIN SHARE INPUT COST INFLATION PREMIUMISATION Marketing Expansion of investment to Pricing to mitigate 14% maintain market + dilution from input + margin-accretive premium brand 13% positions of top-tier cost inflation
Slide 18: Cost Outlook
Cost Outlook C&C Group Unit Cost Movement FY25/26 increase/decrease Cost FY24 increase/decrease FY24 OPEX estimate Breakdown Overheads Manufacturing input costs 8% Cans Distribution costs Utilities 9% Bottles Manufacturing Sugar / Glucose Cost change key input cost 7% Boxes / Board Cereals Unit cost
Slide 19: Free Cashflow (pre-exceptional items)
Free Cashflow (pre-exceptional items) C&C Group 140 120 20 30 100 15 4 80 60 104 94 86 40 20 0 Adjusted EBITDA Working capital Net capital expenditure Net finance costs pre Taxes paid FCF pre exceptional items exceptional / other Continued strong free cashflow generation 19
Slide 20: Net Debt
Net Debt 180 C&C Group 160 140 120 110 100 168 80 60 64 20 40 79 22 58 58 20 0 FY23 net-debt pre-leases Free cash flow Dividend payment Lease payments FY24 net-debt pre-leases Lease liablities FY24 net-debt post-leases Strengthened balance sheet enhances capital allocation options, no short-term ref
Slide 21: Capital Allocation
Capital Allocation C&C Group Grow EBITDA Working capital reduction opportunity Low maintenance capital Stable finance costs and effective tax rate FCF Target >€75m Allocated to: Progressive base dividend Share buybacks / Special Dividends Strategic growth capital / M&A €150m shareholder return FY202
Slide 22: Near-term Outlook
Near-term Outlook C&C Group Outlook & Capital Allocation Outlook Current underlying earnings in line with expectations No change to future earnings expectations Capital allocation Final Dividend Propose 3.97 cents per share (5.86 cents full year) subject to shareholder approval Buyback 1. First €15m
Slide 23: Summary
Summary C&C Group 1 A better business emerging from FY2024, targeting €100m EBIT FY2027 2 Margin expansion opportunities 3 Leading positions in attractive markets and growth in premium brands 4 Disciplined capital allocation, prioritising shareholder returns 5 Underlying earnings outlook in line wit
Slide 24: Q&A
cac group ple * Q&A