Bulmers owner C&C Group swings to FY profit
By Michele Maatouk
Date: Tuesday 17 May 2022
(Sharecast News) - Bulmers and Magners owner C&C Group fizzed higher on Tuesday after saying it swung to a full-year profit as Covid restrictions eased.
In the year to 28 February, the company swung to an operating profit of €47.9m from a loss of €63.6m the year before, with revenues up 88% at €1.44bn. C&C said its performance was driven by 207.8% growth in on-trade net revenue amid fewer trading restrictions in the year.
It pointed out that there were 267 days of trading where the on-trade was open across Ireland and the UK, compared with 117 days a year earlier. In addition, the off-trade segment also performed strongly despite the re-opening of on-trade, it said, with net revenues of €376.3m, down 3.4% versus a year earlier.
Chief executive David Forde said: "Following a period of unprecedented challenges for the hospitality sector, we are delighted to be back serving our customers and delivering our iconic and much-loved brands to our on-trade and off-trade partners. Encouraged by the reaction and resilience of the industry, we are pleased with how trading has recovered and the subsequent strength of customer and consumer demand, which we believe reflects the enduring importance of the on-trade and the role that it plays in our society."
Forde highlighted the "challenging inflationary cost environment" and said C&C has already taken action to afford the business a degree of protection, although it remains susceptible to further increases in the cost base which would necessitate further price increases.
"Despite the current positive sentiment in the hospitality sector post reopening, we are mindful of the pressures being faced by consumers and its potential impact on future demand," C&C said.
The company said FY2023 had started strongly, with net revenue at 12% of pre-Covid levels for the two months to 30 April and 140% of FY2021.
"The benefit of no on-trade restrictions, easing of the pressures on supply chains and additional public holidays has created a more positive trading environment over recent months," C&C said.
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