Drinks group C&C said it expected to see net revenues rise by more than a third as trading continues to recover from the pandemic restrictions.
But inflationary pressures on consumer spending has caused momentum in on-trade to slow, the Bulmers maker said.
In a pre-close trading statement for the six month-period between March 1st and August 31st 2022, the group said it expects net revenues to reach €900 million, around 35 per cent higher year-on-year and broadly in-line with pre-Covid figures. Operating profit is expected to be in the range of €52-€55 million, compared to €16 million in the previous year and €64 million pre-Covid.
Although demand returned “robustly” at the start of the period, momentum slowed in second quarter of the year as inflation hit discretionary spending.
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Net debt to adjusted earnings before interest, depreciation, tax and amortisation is expected to be approximately 1.5x, reflecting the benefit of €43 million proceeds from the first two tranches of three from the sale of the group’s interest in Admiral Taverns, and the good cash generation from the business over the six months.
“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 said.
The group will announce first half results on October 27th.
