Statement re H1 pre-close Trading Statement
C&C Group PLC
H1 pre-close trading statement
H1 FY2023 net revenues +35% on prior year with expected operating profit range of €52-55m
C&C Group plc (‘C&C’ or the 'Group’), a leading, vertically integrated premium drinks company which manufactures, markets and distributes branded beer, cider, wine, spirits and soft drinks across the UK and Ireland, issues a trading statement for the six-month period 1 March 2022 to 31 August 2022 (‘H1 FY2023’).
In the six months to 31 August 2022, C&C expects to deliver net revenues of c.€900m(iii), approximately +35% on the same period last year and broadly in line with the comparable period pre COVID-19 (H1 FY2020). Corresponding operating profit for H1 FY2023 is expected to be in the range of €52-55m(iii)(iv), compared to €16m(v) in the prior year and €64m(v) in H1 FY2020. Trading through H1 FY2023 saw demand return robustly at the start of the period, however, consistent with the wider market and the impact of inflation on discretionary consumer spending, the Group has seen a slowdown in on-trade momentum over Q2 FY2023.
The Group is pleased to report that it expects net debt to adjusted EBITDA of approximately 1.5x(i)(ii)(iii) as at 31 August 2022, achieving its previously stated target. This further reduction in leverage multiple reflects the benefit of €43m proceeds from the first two tranches of three equal tranches from the sale of the Group’s interest in Admiral Taverns, in addition to good cash generation from the business over H1 FY2023. As a consequence of the Group’s balance sheet strength and strong cash flow generating capability, it is the Board’s intention to review the potential return of capital to shareholders, including dividends, in H2 FY2023.
C&C will announce H1 FY2023 results on Thursday, 27 October 2022.
ENDS
Notes
Contacts
C&C Group plc
Patrick McMahon, Chief Financial Officer
Ewan Robertson, Finance and Investor Relations Director
Email: ewan.robertson@candcgroup.com
UK & International Media
Richard Hayhoe
Email: richard.hayhoe@candcgroup.com
Investors, Analysts & Irish Media
FTI Consulting
Jonathan Neilan / Paddy Berkery / Aline Oliveira
Tel: +353 86 231 4135 / +353 86 6025988 / +353 83 8331644
Email: CandCGroup@fticonsulting.com
About C&C Group plc
C&C Group plc is a leading, vertically integrated premium drinks company which manufactures, markets and distributes branded beer, cider, wine, spirits, and soft drinks across the UK and Ireland.
C&C Group is a FTSE 250 company headquartered in Dublin and is listed on the London Stock Exchange.
Note regarding forward-looking statements
This announcement includes forward-looking statements, including statements concerning current expectations about future financial performance and economic and market conditions which C&C believes are reasonable. However, these statements are neither promises nor guarantees, but are subject to risks and uncertainties, including those factors discussed in our FY2022 Annual Report that could cause actual results to differ materially from those anticipated.
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