Bulmers help C&C outperform the alcohol market
Drinks company C&C has reported results in line with expectations as its core brands Bulmers and Tennent’s outperformed the market.
The company has also reconfirmed its commitment to return a minimum of €150m (£125m) to shareholders over the next three years, adding that it has already completed €38m of buybacks.
C&C will pay an interim dividend of 2 cents (1.7p) in the first half of the year, up six per cent year on year, as part of its commitment to a progressive dividend policy.
The firm, which is headquartered in Dublin, reported revenue of €861m in the six months to 30 August, down by €17.7m from the first half of the previous year.
The FTSE 250 company manufactures, markets and distributes branded beer, cider, wine, spirits, and soft drinks across the UK and Ireland.
It said that adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose by £2.9m to reach €46.6m, while profit before tax fell by €300,000m to €21.4m.
Eearnings per share fell by 1.4 cents (1.2p), to 3.2 cents (2.7p).
The company added that core brands Tennent’s and Bulmers, as well as premium brands like Orchard Pig, delivered strong growth, with Orchard Pig revenue up 20 per cent year on year.
Many drinks companies have suffered this year: both Diageo and Distil posted significant declines in revenue.
Profit at the FTSE 100-listed Diageo, which as well as spirits sells Guinness and Baileys, fell by $304m (£237m) – or 4.8 per cent.
Meanwhile, Distil‘s first-half revenue halved amid a steep drop in revenue in light of inflation, cost-of-living pressures and a significant hike in alcohol duty.
The company said it has started to look for a new chief executive after its previous boss, Patrick McMahon, stepped down in June after accounting errors during his tenure as chief financial officer led the firm to adjust prior year financial figures.
Bulmers namer overcomes ‘unfavourable summer weather’
Ralph Findlay, chair and chief executive, said: “I am pleased to report earnings in-line with expectations in [the first half of the year] as we rebuild performance and momentum within the business.
“Despite unfavourable summer weather, our brands demonstrated inherent appeal and resilience with both Tennent’s and Bulmers growing market share and Menabrea and Orchard Pig achieving double digit revenue growth.
“I am also encouraged that we achieved significant growth in distribution in Matthew Clark and Bibendum with customer numbers in August up 10 per cent vs the prior year.
“We continue to make improvements with regards to customer service, which underpins our customer acquisition strategy.
“As we enter the busy Christmas and New Year trading period, we are committed to delivering outstanding service, winning customers, continuing to simplify the business and to further improve operating efficiency.”