Drinks group C&C predicts an unrestricted Christmas trading period, as well as the upcoming FIFA World Cup, will fuel demand, but warned that inflationary pressures are causing a difficult near-term outlook.
he company reported an increase in revenues and profits in the first half of the year after periods of confinement during the equivalent period last year.
Operating profit reached 54.9 million euros in the six months ended August 31. This marked a rise of 254.2 pc.
Net sales increased by 35.6% compared to the first half of C&C’s fiscal year last year to reach 903 million euros.
However, the beverage group noted that cost inflation was impacting current sales, with net revenue for September down 5% from the same month last year.
The group said in a business update today that it expects net debt to be around 263 million euros, down significantly from net debt of 442 million euros for the year 2021.
In Ireland, sales rose 30.5pc to €150.7m, driven by the reopening of catering, while profits rose 128.9pc to €19m in the Irish market .
Revenue generated from the group’s e-commerce platform accounted for 71% of total Irish revenue in August this year, up from 66% in February 2022.
C&C Group produces a range of drinks across the UK and Ireland, including Bulmers and Tennents.
C&C said its current short-term business goal is to ensure stock availability and service to customers for the upcoming holiday season, as well as the FIFA World Cup.
C&C Group chief executive David Forde said the group was in a position of “relative competitive strength” despite external pressures.
“FY2023 H2 will provide our first unrestricted Christmas trading period for three years, in addition to the upcoming FIFA World Cup, therefore our aim is to ensure the highest standards of service and stock availability at during this period and beyond,” he said.
“However, despite these tailwinds, the outlook for the second half of the year is challenging with inflationary pressures on our own margins as well as those of our customers, and cost of living pressures on the near-term consumer environment. “