Drink manufacturer and supplier C&C Group has said positive consumer sentiment and the return of customers to on-trade hospitality has boosted profits in the first half of its financial year.
In October 2021 the Dublin-based business indicated that assuming current trading conditions prevailed, then FY2022 operating profit was expected to be in the range of €50-€55m.
Trading in Q3 was modestly ahead of expectations and its previously stated guidance, with increased profit and cash generation during the period to end of November.
However trading conditions for its on-trade business in December were significantly impacted by additional restrictions across the UK and Ireland, with C&C trading with only 81% of on-trade outlets compared to the same period in 2020 – delivering 64% of the volume against an expectation of 90% and 90% respectively.
While December’s performance was consequently behind expectation, the group said it generated a modest profit for the month.
C&C Group said it has a strong capital structure which provides more than adequate liquidity to support its current and expected business needs, together with strong free cash flow generation.
