C&C Group, best known in Ireland for its Bulmers brand, has reported operating profit of €48m in the year to February 2022 after racking up a trading loss of €60m due to lockdowns the previous year.
Listed on the London Stock Exchange but no longer on Euronext Dublin, C&C’s full year turnover of €1.44bn was double the outcome the previous year,
Net profit excluding exceptionals was €28m, a margin of 1.9%.
Net revenue in Ireland for the period was €224m and the operating margin was 7.4%,
With the re-opening of the on-trade, off-trade net revenues dropped by 0.5% compared with FY2021, the company stated. On-trade volumes were at 84% of the equivalent period in FY2020.
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Minimum unit pricing was introduced in the Republic of Ireland in January 2022 and C&C says it has optimised the off-trade portfolio by introducing new pack sizes and ABVs.
According to C&C, Bulmers is taking volume share in the off-trade in the latest 26 and 13 week market data. This is mirrored in the on-trade where the latest 52 week data points to volume and value share gains compared with FY2020.
David Forde, C&C Group CEO, said FY2023 has started well with net revenue ahead by 12% of pre-Covid (FY2020) levels for the two months to 30 April 2022.
“The benefit of no on-trade restrictions, easing of the pressures on supply chains and additional public holidays has created a more positive trading environment over recent months,” he explained.
“Recently implemented price increases, hedged positions and cost savings programme have provided a degree of protection against cost inflation. However, additional input cost pressure, particularly at our manufacturing facilities, will likely necessitate further price increases.”
“We are operating in an evolving and challenging inflationary cost environment and will continue to monitor this closely over FY2023 and beyond.
“Despite the current positive sentiment in the hospitality sector post reopening, we are mindful of the pressures being faced by consumers and its potential impact on future demand.
“The group continues to play a key role in the UK and Ireland drinks market and is well positioned, with a market leading platform and a position of financial strength to drive sustainable growth and create long-term returns for our shareholders.”
