DUBLIN - C&C Group plc, a prominent player in the premium drinks market, announced its interim financial results for the six months ending August 31, 2024, today. The company, known for its ownership of leading brands such as Tennent's and Bulmers, reported that its earnings are in line with expectations and it remains on track to meet its full-year projections.
Despite challenging market conditions and a disappointing summer season, C&C experienced a marginal net revenue decline of 3%, primarily due to the sale of its non-core soft drinks business in Ireland and reduced volumes in contract brewing and cider sales in Great Britain. However, the company saw a 2% increase in net revenue within its Matthew Clark & Bibendum distribution channels.
The Group's operating profit before exceptional items saw a significant increase of 29%, rising by €9.1 million to €40.3 million compared to the same period last year. This improvement was attributed to ongoing efficiency initiatives across the company, which also contributed to an improved operating margin of 4.7%.
C&C's core brands, Tennent's and Bulmers, have reportedly gained market share in the on-trade sector, reinforcing their market-leading positions. Additionally, the company's premium brands, including Menabrea and Orchard Pig, delivered double-digit revenue growth. The Group's distribution service levels remained high, with customer numbers for Matthew Clark & Bibendum up by 10% year-on-year in August.
Looking ahead, C&C is confident in achieving an operating profit of €80 million for the fiscal year 2025 and has set a target of €100 million for fiscal year 2027. The interim dividend has been raised by 6% from the previous year, reflecting the company's dedication to a progressive dividend policy. C&C also announced that it has already returned €38 million to shareholders as part of its three-year plan to distribute a minimum of €150 million.
The Group has recently appointed Feargal O'Rourke and Sanjay Nakra as Non-Executive Directors and is in the process of recruiting a new CEO.
This financial update is based on a press release statement from C&C Group plc. The company continues to focus on enhancing its service offerings and simplifying its business operations as it approaches the critical holiday trading period.
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