C&C Group FY profits rise, dividend reinstated

24th May 2023 09:30

(Sharecast News) - Bulmers and Magners owner C&C Group posted a jump in full-year profit and revenues on Wednesday amid higher volumes and prices, and reinstated its dividend.

In the year to 28 February, operating profit grew 75.6% to €84.1m, while pre-tax profit rose to €66.8m from €34.4m. Revenue increased 18.4% to €1.7bn. C&C said net revenues were driven by 4.2% volume growth and price/mix growth of 14.2%.

C&C said that with Covid restrictions out of the way, fresh challenges emerged during the year, namely in the form of a high-inflation environment and the associated impact on consumers' discretionary spending, but also strikes in the UK, which affected the hospitality sector.

Nevertheless, the performance of its core brands - Bulmers and Tennent's - has been resilient and brand health scores and market share for both improved year-on-year, "maintaining clear market-leading positions".

As a result, the company proposed to pay a dividend for the first time since 2019, of 3.79 cents.

Chief executive Patrick McMahon said: "Set against a challenging backdrop in FY2023, C&C delivered an improved performance against all financial measures.

"Increased balance sheet strength and inherently strong free cash flow characteristics have enabled C&C to return capital to shareholders through the re-instatement of dividends."