C&c Group Plc · LSE:CCR
C&c — H1 2008/9 Earnings Presentation
20 slides from C&c's earnings presentation, October 2008
Slide 1: C&C Group plc 2008/9 First Half Results
C&C Group plc 2008/9 First Half Results ISE | GCC.I 6 months to 31 August, 2008 2008/9 H1 Results | Slide 1
Slide 2: Presentation Agenda
Presentation Agenda ¾ Summary ¾ Financial Review ¾ Market & Brand Review ¾ Outlook 2008/9 H1 Results | Slide 2
Slide 3: 2008/9 H1 | Summary
2008/9 H1 | Summary 2008/9 Change vs Constant H1 2007/8 H1 FX Revenue (€m) 302.4 (13.2%) (8.8%) Operating profit (€m) 66.5 (0.7%) (0.9%) Operating margin 22% (8.7 pts) (1.8pts) Free cash flow (€m) 47.0 +43.2 Free cash flow/EBITDA 62% NM Adjusted EPS (cent) 17.0 (3%) Dividend per Share (cent) 6.0 (50
Slide 4: Operating Initiatives
Operating Initiatives ¾ New Product Innovation - Magners Light; - Magners Mid-Strength; and - Magners Draught ¾ Cost reduction and Group reorganisation plan implemented - On track to achieve net €10m savings ¾ Disposal of Republic of Ireland wine distribution business 2008/9 H1 Results | Slide 4
Slide 5: 2008/9 | H1 Financial Review
2008/9 | H1 Financial Review 2008/9 H1 Results | Slide 5
Slide 6: Financial Summary - Earnings
Financial Summary - Earnings Continuing Operations excluding exceptional items Aug 08 Aug 07 Constant FX €m €m V. Aug 07 Revenue 302.4 348.2 331.5 Growth (%) (13.2%) (8.8%) Operating Profit 66.5 67.0 67.1 Growth (%) (0.7%) (0.9%) Operating Profit Margin (%) 22.0% 19.2% 20.2% Net Finance Charges (6.4
Slide 7: Cider
Cider Aug 2008 Aug 2007(i) Change €m €m % Revenue - ROI 94.3 105.0 (10.2%) - International 135.5 157.6 (14.1%) 229.8 262.8 (12.6%) Marketing 39.4 42.0 (6.2%) Marketing / Revenue 17.1% 16.0% 1.1pt Operating Profit 57.2 58.1 (1.6%) Operating Margin 24.9% 22.1% 2.8 pts (i) At constant currency 2008/9 H
Slide 8: Spirits & Liqueurs
Spirits & Liqueurs Aug 08 Aug 07(i) Change €m €m % Revenue 41.3 39.2 5.4% Marketing 8.4 9.4 (10.6%) Marketing/Revenue 20.3% 23.9% (3.6 pts) Operating Profit 8.9 8.8 (1.1%) Operating Margin 21.5% 22.4% (0.8 pts) (i) At constant currency 2008/9 H1 Results | Slide 8
Slide 9: Exceptional Items
Exceptional Items €m Non Recurring f/x gain 5.0 Tax (0.5) Total 4.5 2008/9 H1 Results | Slide 9
Slide 10: Cash Flow
Cash Flow Aug 2008 Aug 2007 Change €m €m €m EBITDA 75.3 88.0 (12.7) Capital expenditure (net) (9.0) (61.4) 52.4 Working capital (15.5) (14.9) (0.6) Operating cash flow (OCF) 50.8 11.7 39.1 OCF/EBITDA 67.5% 13% Exceptional items (paid)/rec’d 3.5 Finance Charges (5.8) (6.7) 0.9 Tax (1.5) (1.2) (0.3) F
Slide 11: Balance Sheet
Balance Sheet €m Debt/EBITDA Net debt at 1st March, 2008 256.2 1.7 Free cash flow in period (47.0) Dividends Paid 43.8 Other (0.1) Net debt at 31 August, 2008 252.9 1.8 2008/9 H1 Results | Slide 11
Slide 12: Market & Brand Review
Market & Brand Review 2008/9 H1 Results | Slide 12
Slide 13: Irish LAD Market
Irish LAD Market Market Trends 6 Months 6 Months Feb 08 to Aug 08 Overall Market (i) (2%) (8%) On-Trade (ii) (1%) (3%) Off-Trade (ii) +8% (1%) Bulmers Market Share 6 Months 6 Months Change to Aug 07 to Aug 08 Overall (i) 10.5% 10.1% (0.4) On-Trade (ii) 11.0% 10.7% (0.3) Off-Trade (ii) 8.1% 7.9% (0.3
Slide 14: International Cider
International Cider Overall ¾ Magners 64% share of branded cider Bulmers 36% Magners ¾ Launch of draught and additional SKU’s in H1 64% Magners Volumes H1 2008/9 GB 82% NI 9% Other 9% 2008/9 H1 Results | Slide 14
Slide 15: Magners GB | On Trade
Magners GB | On Trade 6 mth period to Aug 06 Feb 07 Aug 07 Feb 08 Jul 08 (ii) LAD market growth (i) -2.6% -3.0% -6.2% -8.0% -7.4% Cider Market Growth (i) +26% +9% +/- 1% Cider Share of lad 7.0% 7.2% 8.2% 7.9% 8.7% Packaged share of Cider 28% 34% 33% 30% 30% Magners share of : Packaged cider 80% 78%
Slide 16: Magners | GB Off-Trade
Magners | GB Off-Trade 6 month period to Feb 07 Aug 07 Feb 08 Aug 08 LAD Market growth (i) 2.5% 0.6% 5.1% 1.4% Cider share of LAD 14.2% 15.7% 15.9% 17.1% Premium share of Cider 10% 14% 14.5% 16.3% Magners share of Cider 7.0% 8.3% 7.8% 7.5% Magners share of Premium Cider 70.1% 58.7% 53.9% 46.2% ¾ Con
Slide 17: Spirits & Liqueurs
Spirits & Liqueurs ¾ Tullamore Dew maintaining good growth Brand Shipment Growth in main markets Tullamore Dew 11% ¾ Carolans recovery in US market Carolans 3% Frangelico (4%) Total 4% 2008/9 H1 Results | Slide 17
Slide 18: Outlook
Outlook 2008/9 H1 Results | Slide 18
Slide 19: Financial Outlook | FY 2008/9
Financial Outlook | FY 2008/9 ¾ Cider – Revenue decline to continue in H2 – Full year margin down on last year ¾ Spirits and Liqueurs – Tullamore Dew growth to continue – Full year profit growth – low single digit ¾ Balance sheet remains strong 2008/9 H1 Results | Slide 19
Slide 20: C&C Group plc contact details
C&C Group plc P +353 1 616 1100 The Grange F +353 1 616 1163 Stillorgan Road E C&CGroup@kcapitalsource.com Blackrock W www.candcgroupplc.ie Co Dublin 2008/9 H1 Results | Slide 20