Drinks group C&C said it had 2022 saw a return to robust trading as Covid-19 restrictions were lifted and consumer demand bounced back.
The company, which manufactures, markets and distributes branded beer, cider, wine, spirits and soft drinks across the UK and Ireland, said it expected to report operating profit for the financial year ended February 28th, 2022 in the range of €45-€47 million.
Operating profit for the second half of the financial year was hit by renewed restrictions on the hospitality industry, particularly over the key Christmas trading period. Those restrictions were eased in January, with a subsequent return to positive trading in the on-trade for C&C’s brands.
“We were back trading with 81 per cent of direct delivered outlets in February 2022 versus February 2020, with corresponding volumes at 68 per cent and momentum building as outlets continue to re-open,” C&C said in the trading statement.
The group noted the pressure of rising costs, but said it had some protection through its €18 million cost reduction plan, its own recent price increases and input cost hedging.
C&C said it expected net debt to be approximately €263 million at the end of the financial year, down from €442 million at the end of 2021.
“This significant reduction in net debt, together with an improving business performance, will substantially enhance our financial flexibility and enable C&C to deliver our strategic objectives, to drive growth for C&C and returns for shareholders,” the statement said.
