C&C Group’s premium beer brand portfolio grew by 44% in 2023
C&C Group said its premium beer brand portfolio delivered on-trade volume growth of 44.1% in the 2023 financial year.
As part of its 2023 financial results announcement, it said the market share for Tennent’s and Bulmers improved during the financial year, maintaining clear market-leading positions.
It added that Magners is progressing in the off-trade, recording its highest off-trade share of the cider category in three years.
Meanwhile, C&C Group said its net revenue increase of 18.4% to €1.7 million, driven by volume growth of 4.2% and price/mix growth of 14.2%.
As part of its announcement, it said it saw a ‘resilient performance’, with robust underlying cash generation and enhanced shareholder returns.
Its operating profit increase of 75.6% to €84.1 million, in line with guidance, delivered an operating profit margin of 5.0% (FY2022: 3.4%).
In the second half of the financial year, margins were challenged by weakened consumer demand, due to cost of living pressures, various strikes in the UK and latterly Enterprise Resource Planning (ERP) system implementation disruption in the Group’s GB distribution businesses.
C&C’s free cash flow of €75.3 million pre-exceptional and cash flow conversion of 64.6% underscore the Group’s inherent cash-generating and conversion capabilities.
Net debt to adjusted EBITDA of 1.3x, represents a significant improvement from 3.4x reported in February 2022. The Group’s medium-term leverage ratio target is between 1.5x and 2.0x.
Reinstatement of dividends; proposed FY2023 dividend of 3.79% share and intention to adopt a progressive dividend policy going forward.
The Group announced last week that David Forde would be stepping down as CEO and that Patrick McMahon, Group CFO, would replace him. Ralph Findlay, Chair, has been appointed executive chair to support the management transition as McMahon will also retain his responsibilities as CFO until a new CFO is appointed, the process for which will commence shortly.
McMahon said: “Set against a challenging backdrop in FY2023, C&C delivered an improved performance against all financial measures. Increased balance sheet strength and inherently strong free cash flow characteristics have enabled C&C to return capital to shareholders through the re-instatement of dividends.”