In a trading update released during the group’s annual general meeting, it was announced that sales had increased by 10% in the four months ending in June.
C&C, a leading producer of beverages in the UK and Ireland, experienced a growth in sales for its core brands, including Tennent’s and Bulmers, which rose by 9% during the same period.
In May, the company issued a profit warning due to a one-off charge of €25m caused by challenges in implementing a new system upgrade. However, the group stated that service levels were gradually improving as they address the enterprise resource planning (ERP) system implementation issues in their British distribution business.
Patrick McMahon, the recently appointed CEO, acknowledged that there is still more work to be done to fully resolve the ERP issues and restore on-time delivery metrics. McMahon emphasized the company’s immediate focus on achieving these objectives.
C&C reported a leverage multiple of 1.3x at the end of the previous financial year, but this is expected to temporarily increase due to the system implementation challenges. However, it is projected to remain within the target range of 1.5x to 2x for the current financial year ending in February.
At the annual general meeting, C&C proposed a dividend of 3.79 cents for the previous financial year, pending shareholder approval. The company’s operating profit for the year ending in February increased by 75.6% to €84.1m, and net revenue rose by 18.4% to €1.69bn during the same period. C&C attributed this growth to a 4.2% increase in volumes and a 14.2% price hike.
Executive Chair Ralph Findlay highlighted the strength of the company’s brands, balance sheet, and cash generating capability, which enabled them to recommend a dividend despite the challenges faced with the ERP system implementation.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
