Bulmers owner C&C Group has said it expects to record an operating profit of €45-47m for its full financial year following the tightening of public health restrictions in Ireland and the UK during the Omicron wave and the subsequent return of customers to pubs and hospitality businesses.
The company, which makes and distributes beer, cider, wine, spirits and soft drinks, said the financial year finished with a "robust return to trading driven by strong consumer demand".
The update comes after C&C warned in January of the adverse effect restrictions had on trading over the busy Christmas period.
"In January 2022, restrictions in our core markets of the UK and Ireland were eased and we are pleased to see positive trading in the on-trade," C&C said in a statement.
"We were back trading with 81% of direct delivered outlets in February 2022 versus February 2020, with corresponding volumes at 68% and momentum building as outlets continue to re-open."
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C&C warned investors that it is operating in "an evolving inflationary cost environment," but that it had reduced operating costs by €18m, increased prices and hedged input costs.
"Over and above effective management of both operating and input costs, our well invested network and technology-led system continues to provide the platform for C&C to be the pre-eminent brand led drinks distributor in the UK and Ireland," the company added.
The Tennents and Finches owner said it had focused on liquidity management and debt reduction during its recently ended financial year, and that its net debt would be down from €442m to €263m year-on-year.
The company believes its lower debt and improving business performance would enhance its financial flexibility and allow management to deliver on its strategic objectives to "drive growth for C&C and returns for shareholders."
The Dublin-based, London-listed firm, which operates manufacturing and packing facilities in Tipperary and Glasgow, will announce its results for 2021-22 in May. Bulmers recently secured exclusive pouring rights at Horse Racing Ireland racecourses in a three-year deal.
(Pic: RollingNews.ie)
