C&C Group expects to deliver net revenue of €870 million in the first half of its financial year, down 1% compared to the corresponding period last year.
In a trading update, the Tennent’s and Bulmers maker said its operating profit for the period is expected to be in the range of €29-€31 million, including a significant majority of the one-off profit impact associated with Enterprise Resource Planning (ERP) system implementation disruption in its distribution business in Great Britain.
Patrick McMahon, group chief executive officer commented, "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.
"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 timeframe.
McMahon added, "Delivering outstanding service, winning back customers, continued business simplification, and improved operating efficiency remain our top priorities and focus for the second half."
Other Highlights
The performance of the company's own brands in Ireland and Scotland was encouraging, with net sales revenue for its branded business witnessing 6% growth.
Trading at the start of the first half benefited from good weather, particularly in June. However, poor weather in July and August combined with cost-of-living pressures, particularly in Great Britain, resulted in a slowdown in the months that followed.
The process to recruit a new group chief financial officer is underway in collaboration with an independent executive search firm.
The company added that it made progress in resolving the ERP system implementation issues in line with internal expectations.
