Drinks group C&C said it expected its full-year operating profit to be in line with expectations after a resilient performance in the Christmas period.
The Bulmers owner said branded revenue in the 10 months to December 2023 was up 6 per cent, while revenue at its distribution business was down 3 per cent.
Current market conditions are still challenging, it said, although mitigating the impact of inflation, improved operating efficiency and gaining customers remain its focus.
The board also said it still intended to distribute up to €150 million to shareholders over the next three fiscal years.
The drinks group appears to be back on track after some disruption caused by delayed implementation of a new tech system. That delayed price increases, caused additional running costs and lost business as the company’s ability to deliver full orders on time was affected. C&C said in October that net revenue in the six months to August rose almost 7 per cent on the year. It also completed its search for a new finance chief, appointing UK drinks industry veteran Andrew Andrea to the role.
In a note on Thursday morning, Davy said the latest update suggested “modest upside” to the stockbroker’s current forecast of €55.2 million in operating profit, and said it would leave its earnings forecast for the fiscal year 2025 unchanged.
“The shares are +6 per cent on a one-month basis, and we see the equity building on this,” Davy said.
It pointed to C&C’s service levels in its distribution business in Britain, saying it confirmed an “impressive restoration” of service levels following the system related challenges.
C&C is scheduled to issue results for its 2024 financial year in May.
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