TIDMCCR
C&C Group plc ('C&C' or the 'Group') issues the
following update for the period 1 March 2023 to 30 June 2023 ahead
of its Annual General Meeting (AGM) which will be held at 11am
today.
Our branded business has had an encouraging performance in early
FY2024, building on growth achieved in FY2023, with Net Sales
Revenue of our branded business up 10%(i) in the four months to the
end of June. Net Sales Revenue of our core brands, principally
Tennent's and Bulmers were up 9%(i) in the same period, with each
brand continuing to grow category share(ii) .
We are pleased to report progress in resolving the Enterprise
Resource Planning ('ERP') system implementation issues in the
Group's GB distribution business outlined in the FY2023 Preliminary
Results Announcement in May 2023, with service levels steadily
improving. While this progress is consistent with our immediate
objectives, we continue to target further improvements to On Time
in Full ('OTIF') metrics consistent with our aim to deliver
outstanding service to our customers. The ERP system implementation
is a key step in the digital transformation and optimisation of the
business, which will enable the consolidation and standardisation
of processes across the Group, drive efficiencies, improve
automation, improve customer experience, and provide a platform for
digital commerce.
C&C's strong balance sheet and free cash flow generation
capabilities are reflected in the reinstatement of a dividend of
3.79 cents per share for FY2023, subject to shareholder approval at
today's AGM. FY2023 leverage(iii) was 1.3x at 28 February 2023. As
previously communicated, while leverage will temporarily increase
as a result of the ERP system implementation issues, it is expected
to be within the Group's leverage target range of 1.5x to 2x for
the end of the financial year in February 2024. The potential for
returns of capital will be kept under review having regard to a
range of factors including wider economic indicators, market
conditions and progress in restoring margins.
Non-Executive Director Appointment & CFO Recruitment
Process
C&C is pleased to announce the appointment of Angela
Bromfield as an independent Non-Executive Director, effective from
the conclusion of today's 2023 AGM. On joining the Board, Angela
will succeed Helen Pitcher as Chair of the Remuneration
Committee.
Angela's appointment follows a thorough search process led by
the Nomination Committee, in conjunction with an independent
executive search firm. Angela brings wide business strategy,
communications and marketing experience to the Board, together with
significant experience as an independent Director and as
Remuneration Committee Chair at several UK listed companies.
Angela is currently Senior Independent Director, Chair of the
Remuneration and ESG Committees and a member of the Nominations
Committee of Harworth Group plc. She is also a Non-Executive
Director, Chair of the Remuneration Committee and a member of the
Audit and Nominations Committees of Marshalls plc. Angela has
previously been a Non-Executive Director and Chair of the
Remuneration Committee at Churchill China plc and Zotefoams
plc.
Separately, the Group's process to recruit a new Group Chief
Financial Officer continues and an update will be provided in due
course.
Patrick McMahon, Group Chief Executive Officer, commented: "We
are pleased with the start our branded business has made in FY2024.
We are also reporting progress on the resolution of the ERP system
implementation issues. However, the Group's performance is not at
the level we planned, because of the ERP issues, and resolving them
fully including the permanent restoration of OTIF metrics, remains
our immediate objective and focus".
Ralph Findlay, Executive Chair, commented: "Despite the
challenges relating to the ERP system implementation, the
performance of our brands, the strength of the Group's balance
sheet and our robust cash generating capability have enabled us to
recommend a dividend to our shareholders.
Separately, I am delighted to welcome Angela Bromfield to the
Board of C&C as a Non-Executive Director and Chair of the
Remuneration Committee. I look forward to working with her in the
years ahead. I also thank Helen Pitcher and Jim Thompson who step
down from the Board today for their support and contributions to
the Group."
This announcement is made in accordance with Listing Rule 9.6.11
and there is no further information to be disclosed pursuant to
Listing Rule 9.6.13.
(i) Unaudited financials.
(ii) Bulmers: Ireland (NIQ) Off-Trade: Data is 12 weeks to 23.04.23.
Ireland and NI (CGA) On-Trade Data is 12 weeks to end of April 2023.
Tennent's and Magners Original: Data is 12 weeks to 20.05.23 for
On-Trade and 14.05.23 for Off-Trade.
(iii) Leverage is defined as net debt to earnings before exceptional items,
finance income, finance expense, tax, depreciation, amortisation and
share of equity accounted investments profit after tax. Net debt
comprises borrowings (net of issue costs), lease liabilities
capitalised less cash.
ENDS
Contacts
C&C Group plc
Riona Heffernan, Group Finance & Investor Relations
Director
Email: riona.heffernan@candcgroup.com
UK & International Media
Richard Hayhoe
Email: richard.hayhoe@candcgroup.com
Investors, Analysts & Irish Media
FTI Consulting
Jonathan Neilan / Paddy Berkery / Aline Oliveira
Tel: +353 86 231 4135 / +353 86 602 5988 / +353 83 833 1644
Email: CandCGroup@fticonsulting.com
About C&C Group plc
C&C Group plc is a leading, vertically integrated premium
drinks company which manufactures, markets and distributes branded
beer, cider, wine, spirits, and soft drinks across the UK and
Ireland.
-- C&C Group's portfolio of owned/exclusive brands include: Bulmers, the
leading Irish cider brand; Tennent's, the leading Scottish beer brand;
Magners the premium international cider brand; as well as a range of
fast-growing, premium and craft ciders and beers, such as Heverlee,
Menabrea, Five Lamps and Orchard Pig. C&C exports its Magners and
Tennent's brands to over 40 countries worldwide.
-- C&C Group has owned brand and contract manufacturing/packing operations
in Co.Tipperary, Ireland and Glasgow, Scotland.
-- C&C is the No.1 drinks distributor to the UK and Ireland hospitality
sectors. Operating through the Matthew Clark, Bibendum, Tennent's and
Bulmers Ireland brands, the Group has a market leading range, scale and
reach including an intimate understanding of the markets it serves.
Together this provides a key route-to-market for major international
beverage companies.
C&C Group is a FTSE 250 company headquartered in Dublin and
is listed on the London Stock Exchange.
Note regarding forward-looking statements
This announcement includes forward-looking statements, including
statements concerning current expectations about future financial
performance and economic and market conditions which C&C
believes are reasonable. However, these statements are neither
promises nor guarantees, but are subject to risks and
uncertainties, including those factors discussed in our FY2023
Annual Report that could cause actual results to differ materially
from those anticipated.
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CONTACT:
C&C Group PLC
SOURCE: C&C Group PLC
Copyright Business Wire 2023
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