C&C says branded sales continue to rise as core brands gain ground

Drinks group C&C said branded sales rose in the four months to the end of June, as core brands continued to grow market share and the company built on growth achieved in its previous financial year.

In an update for the period between March 1st and June 30th, the company said net sales for its branded business rose 10 per cent over the period, with brands such as Tennent’s and Bulmers up 9 per cent. The group is recommending a dividend of 3.79 per share for the 2023 financial year.

C&C held its annual general meeting (agm) on Thursday.

The group said it had made progress in resolving enterprise resource planning (ERP) system implementation issues, part of the company’s digital transformation, in the group’s British distribution business, and said service levels were steadily improving. C&C said it was targeting further on time in full (OTIF) metrics and aimed to improve service to customers. The project has taken longer than expected to implement, hitting profitability and service in recent months.

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“Despite the challenges relating to the ERP system implementation, the performance of our brands, the strength of the group’s balance sheet and our robust cash-generating capability have enabled us to recommend a dividend to our shareholders,” said Ralph Findlay, executive chair.

The new system implementation is considered a key step in the digital transformation and optimisation of the business, driving efficiencies, improving automation and customer experience.

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“We are pleased with the start our branded business has made in FY2024,” said group chief executive Patrick McMahon. “We are also reporting progress on the resolution of the ERP system implementation issues. However, the group’s performance is not at the level we planned, because of the ERP issues, and resolving them fully including the permanent restoration of OTIF metrics, remains our immediate objective and focus”.

[ C&C shares plunge after company incurs €25m charge related to new system headache ]

C&C also appointed Angela Bromfield as an independent non-executive director, succeeding Helen Pitcher as chair of the remuneration committee. Jim Thompson is stepping down from the board.

The group said it was continuing its search for a new group chief financial officer.