C&c Group Plc · LSE:CCR
C&c — H1 FY2023 Earnings Presentation
23 slides from C&c's earnings presentation, October 2022
Slide 1: H1 FY2023 Results Presentation
H1 FY2023 Results Presentation October ‘22
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 the Company in any jurisdiction or an ind
Slide 3: Progressing our strategy with a resilient H1 FY2023 performance
Progressing our strategy with a resilient H1 FY2023 performance C&C Group FINANCIAL Operating profit Operating margins Net debt/EBITDA (trailing) HIGHLIGHTS €54.9m (+254%) 6.1% (2.3% H1 FY22) 1.5x (FY22 YE 3.4x)Y Win in cider Premium Beer BRAND STRENGTH Key share gains Growing distribution and rate
Slide 4: Market Observations and Considerations
Market Observations and Considerations C&C Group Structural & economic pressures squeeze consumers and supply chain – C&C relatively well positioned to manage Customer Consumer Distribution Rising costs and squeezed margins Consumer squeeze? – opportunity in Service levels – C&C re-establishing - C&
Slide 5: Financial Performance
cac group plc Financial Performance
Slide 6: H1 FY2023: Solid trading performance
H1 FY2023: Solid trading performance Rebuilding of operating margins to 6.1% in H1 FY2023 C&C Group €903m €54.9m €70.9m Net Revenue Operating profit Adjusted EBITDA +36% vs H1 FY2022(1) +254% vs H1 FY2022(1) +132% vs FY2022(1) -1% vs H1 FY2020(1) -18% vs H1 FY2020(1) -5% vs FY2020(1) 6.1% €55.3m €18
Slide 7: H1 FY2023: Net revenue: +36%
H1 FY2023: Net revenue: +36% C&C Group GB net revenues +37%, driven by distribution with Ireland +31% driven by branded. +43% 189.5 (5.3) 903.0 • Branded net revenues +48% +27% +20% +28%, price mix (28%) delivering 24%pts of 19.0 19.1 (2.9) 17.5 €'m 657.3 8.8 666.1 the growth (71%) • Distribution ne
Slide 8: H1 FY2023: Operating profit - distribution margin at 4.2%
H1 FY2023: Operating profit - distribution C&C Group margin at 4.2% Group distribution margins achieving medium term target of 4%, branded margins impacted by increased marketing investment and inflationary cost pressures. 30.2 54.9 • The highest ever Branded margin Distribution margin distribution
Slide 9: H1 FY2023: Robust cash generation
H1 FY2023: Robust cash generation C&C Group Our inherently strong cash generating characteristics delivered free cash flow conversion of 78%. €1m Working capital 78% FCF Conversion • €55.3m of free cash flow. outflow €'m • Medium-term range of 65- 70.9 (12.5) (16.1) 27.7 (7.6) 75%. (7.3) (3.4) 3.6 5
Slide 10: Net debt: Strong position – net debt/EBITDA 1.5x
Net debt: Strong position – net C&C Group debt/EBITDA* 1.5x C&C has continued to de-lever through H1, driven by free cash flow generation and proceeds from the sale of Admiral. €'m (271.3) (179.7) 42.8 0.7 (8.4) 4.7 (0.4) 52.2 Feb-22 Free cash flow Admiral Disposal Lease liabilities Non-cash issue T
Slide 11: Capital allocation hierarchy supporting our organic growth ambition
Capital allocation hierarchy supporting C&C Group our organic growth ambition Achieved target net debt to EBITDA < 2.0x H1 investment of €7.6m in Capex Organic Growth through brand H1 investment of €18.4m into marketing investment (+90% vs H1 FY2022 (1)) Sustainability & technology in H1 investment
Slide 12: Performance
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Slide 13: Win in cider
Win in cider C&C Group Bulmers in structural growth with Magners recovering in the near-term and further strong volume growth in Orchard Pig. Supported by growing brand investment 66.0% C&C Ireland cider vol share* 64.0% 62.0% 60.0% Off-trade YOY On-trade YOY Building momentum 58.0% in both the on a
Slide 14: Grow premium beer
Grow premium beer C&C Group Establishing our premium portfolio in both the on-trade and off-trade, growing market share, distribution and rate of sale with increased brand investment MAT volume share growth H1 FY2022 distribution YOY H1 FY2022 rate of sale YOY +0.2%pts vs FY2022(1) +49% +82% MAT vol
Slide 15: Growing our agency and equity for growth brands
Growing our agency and C&C Group equity for growth brands Generating significant growth at enhanced margins Net +34% revenue Jubel volume progression Agency net revenue accounts for c.7% of total net revenue H1 FY20 H1 FY21 HI FY22 H1 FY23 15
Slide 16: Growing revenue per customer and improving service levels
Growing revenue per customer and C&C Group improving service levels We have significantly grown our share of customer as service levels improve Growing revenue per customer +68% Matthew Clark Bibendum On Time in Full 95.0% Ireland GB Group 90.0% 85.0% 80.0% 75.0% 70.0% FY23 H1 65.0% FY22 H1 60.0% 55
Slide 17: Delivering our sustainability ambitions
Delivering our sustainability ambitions Continued progress in H1 FY2023, notably we are on track to meet carbon reduction C&C Group targets and announcing a three year community partnership with the Big Issue Environment Social Governance Group on track to reach carbon Training 100 mental health fir
Slide 18: Summary and outlook
Summary and outlook C&C Group ❑ Strong trading recovery alongside strengthening of the balance sheet and divestment of Admiral Taverns. ❑ Delivering our medium-term targets for distribution margins and debt leverage. ❑ Progressing our strategy. ❑ Managing cost inflation through further price increas
Slide 19: Financial Appendix
C&C Group Financial Appendix 19
Slide 20: H1 FY2023 financial outcome
H1 FY2023 financial outcome C&C Group FINANCIAL HIGHLIGHTS €'m (except per share items) H1'23 H1'22 H1'23 vs H1'22 % The Group has delivered significant net revenue Net revenue (1) 903.0 666.1 36% growth and margin expansion in H1 FY2023 as Adjusted EBITDA (1) (2) 70.9 30.5 132% restrictions were ea
Slide 21: GB segment
GB segment: C&C Group Significant net revenue and operating profit growth supported by expanding operating margins €m Great Britain Operating margin* Constant currency* H1 FY2023 H1 FY2022 Change % 25.0% 22.8% Net revenue 752.3 550.6 37% 20.0% 15.0% 13.6% 107.1 89.6 20% of which Branded IMPACTED IMP
Slide 22: Ireland segment
Ireland segment: C&C Group Easing of restrictions and the introduction of minimum unit pricing driving net revenue, operating profit and margin expansion €m Ireland Operating margin* Constant currency * H1 FY2023 H1 FY2022 Change % 40.0% 36.6% 35.0% Net revenue 150.7 115.5 30% 30.0% 23.9% 25.0% of w
Slide 23: H1 FY2023 Net revenue for core brands
H1 FY2023 Net revenue for core C&C Group brands Unrestricted on-trade driving 27% growth in our core brand net revenue(1) 8.9 (2.4) 5.1 120.1 2.6 7.8 3.3 94.8 €'m H1'22 CC Tennents volume Tennents Bulmers volume Bulmers Magners volume Magners H1'23 price/mix price/mix price/mix 23 (1) Adjusted for c