Profits at cider and lager maker C&C Group PLC (LON:CCR) surged by more than a fifth last year, helped by the “transformational” acquisitions of Matthew Clark and Bibendum last spring.
C&C, which owns the Magners cider and Tennents lager brands, salvaged Matthew Clark and Bibendum from the wreckage of Conviviality, which collapsed in April.
READ: C&C earnings to be at “upper end” of forecasts
With the contribution from the two drinks suppliers, net revenue almost trebled to €1.57bn in the year ended 28 February (2018: €0.55bn). Pre-tax profits climbed by 17% to €92.9mln (2018: €79.2mln).
As C&C had guided for in a trading update back in March, earnings per share jumped 21% to 26.6 cents (2018: 22.0 cents).
As well as the two acquisitions, bosses put the outperformance down to last summer’s “exceptional” weather, which they conceded “is not something we can necessarily hope to repeat.”
Off to a “solid start” in new year
“FY2019 was a transformational year for the company,” said chief executive Stephen Glancey.
“Despite strong multi beverage brand led positions in Ireland and Scotland, access to the wider UK on-trade had always been a challenge, the acquisition of Matthew Clark and Bibendum changes this dynamic.”
Looking ahead, Glancey said it was a “challenge” to predict this year’s performance given the various economic and political uncertainties.
But he said the company had made a “solid start” to the financial year, in-line with expectations, and that he was targeting double-digit earnings growth.
Shares edged 1.1% higher on Wednesday morning to €3.64, valuing the company at €1.1bn.