C&C predicts lower revenues in first half of the year

Drinks group C&C said revenues would be lower in the first half of the year, with the operating profit expected to be up to €31 million as the company restored service levels following the implementation of a new tech system.

In a trading statement for the six-month period between March 1st and August 31st 2023, C&C said it expected a net revenue of €870 million, down 1 per cent on the same period a year earlier. Operating profit is predicted to be in the range of €29-€31 million.

The results also include the financial hit from the delayed roll-out of a new tech system in the company’s GB business, that cost C&C millions in delayed price increases, additional running costs and lost business as the company’s ability to deliver full orders on time was affected.

C&Csaid good progress had been made in resolving the issues with the implementation of the system, and On Time in Full (OTIF) delivery metrics have returned to pre-ERP implementation levels.

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The company said trading for its own brands was encouraging in Ireland and Scotland, leading to a 6 per cent rise in net sales revenue as good weather in June boosted sales. However, sales were also under pressure from poor weather in July and August, and cost-of-living pressures.

“Set against a difficult market backdrop, we are pleased with the strength of the performance of our branded businesses in Ireland and Scotland in the period,” said Patrick McMahon, C&C’s group chief executive.

“We are particularly pleased with the progress we have made in restoring customer service levels following the ERP system implementation issues in our GB distribution business within our planned time frame.

“Delivering outstanding service, winning back customers, continued business simplification and improved operating efficiency remain our top priorities and focus for the second half [of the year].”

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C&C said it is evaluating other forms of capital return, in addition to reinstating dividends earlier in the year. The company will report its first-half results on October 26th.

Meanwhile, the group is still seeking a new chief financial officer, with the recruitment process ongoing.