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Magners owner C&C Group PLC on Thursday gave a largely cheery update about its recent financial year, reiterating its intention to resume dividend payments. The Dublin-based beer, cider, wine, spirits and soft drinks company’s financial year ended on February 28. It expects to report annual net revenue of €1.69 billion, which would be up 18% from the previous year. Volume growth was slower, however, at 4%. C&C expects operating profit before exceptional items of €84 million, higher compared to €47.9 million a year before. This is at the low end of its January guidance of €84 million to €88 million. ‘This outcome reflects a number of factors, including the previously noted softer than expected Christmas trading and the impact of the various strikes in the UK,’ C&C explained. Nonetheless, thanks to strong cash flow generation, C&C intends to resume dividend payments when its final results are announced in May. It has not paid a dividend for the past two financial years, blaming the Covid pandemic. The company said it was ‘pleased’ with the performance of its core brands such as Bulmers cider and Tennent’s lager, which are both growing market share. Shares in C&C were up 2.5% to 153.50 pence each in London on Thursday. The company said it began a ‘significant technology project’ in its operations in Great Britain last month, but didn’t provide further details. The project will ultimately help its digital transformation and optimisation, but will hit service and profit slightly. This is due to implementation taking longer than expected, it explained. ‘However, encouragingly service levels have largely returned to normal levels,’ C&C said. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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