C&C Group plc reports 6.9% rise in branded revenues despite ERP disruption
The Board intends to distribute up to €150m to shareholders over the next three fiscal years (Photo by Tiger Lily via Pexels)
C&C Group plc announces results for the six months ended 31 August 2023 (‘H1 FY2024’). Despite an ERP disruption, net revenue aligns with H1 FY2023, with a 6.9% rise in branded revenues.
A rise in performance in Ireland and Scotland, Bulmers and Tennent’s delivered revenue growth of 9.1%, maintaining clear market-leading positions. Premium beer portfolio recorded revenue growth of 23.1% with volume growth of 16.8%.
H1 FY2024 operating profit at €30.5 million, down €22.8 million due to a €22 million ERP impact. GB distribution broke even. Branded business profit increased 4.6% to €25.2 million with solid 14.5% margins despite inflation.
The Board intends to distribute up to €150m to shareholders over the next three fiscal years, through dividends and other capital returns as deemed appropriate at the time.
Operating environment challenges are expected to persist with continued cost pressure over the next 12 months, before some easing in FY2025.
Patrick McMahon, group chief executive officer, C&C, said: “Set against a difficult market backdrop we are pleased with the strength of the performance of our branded businesses in Ireland and Scotland in the period. We have made significant progress in restoring customer service levels following the ERP system implementation issues in our GB distribution business within our planned time frame.”
