Irish drinks firm C&C Group expects full-year underlying operating profit in line with current market expectations for its financial year 2024.
The Bulmers maker said trading was 'resilient' over the Christmas period despite some adverse weather in Great Britain.
In the 10 months to December 2023, C&C Group's branded net revenue saw a 6% increase, while distribution witnessed a 3% decline.
The company added that its service levels were 'industry-leading' in its Great Britain distribution business over the Christmas trading period.
A 'Reassuring' Update
According to Greg Johnson, equity research analyst for travel and leisure at Shore Capital, the trading update is "reassuring" given the difficulties over the last few periods.
Johnson added, "Given the well flagged difficulties from the ERP implementation in the current financial year, a return to historic levels is key.
"The ERP implementation is said to have cost the group around €25 million in the current financial year, and we anticipate this being recovered into FY25, including recovery of lost customers."
Outlook
C&C Group's board reaffirmed its intention to distribute up to €150 million to shareholders over the next three financial years on the back of increasing confidence in the medium-term outlook for the business and its strong cash generation capabilities.
Shore Capital estimates that the ordinary dividend will account for broadly half of the return, with potentially more to follow.
In the medium term, the group's priorities include improving operating efficiency, simplifying business processes, and acquiring customers.
The company reported a 'solid underlying performance' in the first half of its financial year ended 31 August 2023, driven by its branded business segment.
C&C will publish its annual results in May for its current financial year ending 28 February 2024.
