C&C Group whose brands include Magners has reported a strong return to trading, driven by the gradual easing of on-trade restrictions since April 2021, good weather, the European Football Championship and ‘staycations’.
Despite restrictions impacting indoor and outdoor hospitality in H1 FY2022, the group said. “With the gradual easing of restrictions in the UK on-trade from April 2021, the group returned to profit and underlying cash generation in May 2021.”
“With indoor and outdoor hospitality open across our core markets for the last five weeks of H1 FY2022, we were pleased to serve 90% of the distribution points in August 2021 versus August 2019.
“Group net revenue in H1 FY2022 is expected to be €657m, compared with €398m in H1 FY2021 and €896m in H1 FY2020 (pre-covid-19). Operating profit for H1 FY2022 is expected to be €16m, compared to a loss of €12m in H1 FY2021 and a profit of €66m in H1 FY2020.
Chief executive David Forde (pictured) added, “Despite sector challenges, our business has shown its inherent strength and cash generation capability in the first half of FY2022.
“As the on-trade has progressively re-opened, we returned to profitability and worked closely with our customers to meet the resurgence in consumer demand.”
“Our focus remains on building a better business by further developing our brand and system strength, while continuing to navigate the near-term capacity constraints our industry faces.”