C&C Group sees H1 earnings in line, net revenue down 3%

9th Sep 2024 07:23

(Sharecast News) - Magners cider maker C&C Group said first-half earnings had been in line with expectations, with net revenues expected to be down 3%.

Underlying operating profit in the six months to August 31 was expected in the range of €39m-€41m, reflecting the phased rebuilding of C&C's distribution business profitability after a bungled software upgrade at its Matthew Clark and Bibendum businesses hit earnings last year.

Revenues would be it by the disposal of the NAB business in Ireland, lower contract brewing volumes and softer cider volumes in GB.

The Dublin-based company added that it had reached agreement with Budweiser Brewing Group, part of AB InBev, to restructure elements of our trading relationship, with C&C will reassume control and distribution of the group's cider portfolio, including Magners, in Great Britain from January 1, 2025.

On the same date, AB InBev will assume control and distribution of its beer portfolio in the off trade in the Republic of Ireland.

"While current market conditions remain challenging, improving efficiencies, business simplification, winning customers and brand distribution remain our top priorities. We remain confident on achieving our operating profit target for the current financial year and making progress towards the operating profit target of €100m by full-year 2027," C&C said.

It also reaffirms its intention to distribute at least €150m to shareholders over three years while maintaining the group's financial leverage target of approximately 1 times core earnings.

Reporting by Frank Prenesti for Sharecast.com