C&C Group PLC (LSE:CCR) predicted a return to profit and revenue growth in the first half of the year, ahead of plan, following the opening of the hospitality sector in Ireland and the UK as Coronavirus (COVID-19) restrictions were eased.
The Dublin-based maker of Tennent’s lager and Magners cider said it expects to report group net revenue of €657mln for the first half of full-year 2022, compared with €398mln in the same period last year and €896mln in the first six months of pre-COVID FY2020.
Revenue was boosted by customers returning to pubs and restaurants, good weather, the European Football Championship and ‘staycations’, the group said.
Operating profits for the first half to end-August are forecast to be €16mln, compared to a loss of €12mln in H1 FY2021 and a profit of €66mln in H1 FY2020.
Net debt stood at €246m at end of August.
C&C said Bulmers is growing its share of the cider market, while Tennent’s has broadly maintained its market share compared with a year ago and grown its share versus two years ago.
The key distribution businesses, Matthew Clark and Bibendum, returned to profit in June and remained profitable over the key summer trading period.
C&C said it has been partly insulated from the shortage of lorries because its distribution network is controlled inhouse and consequently it managed to meet customer demand through the peak summer trading period.
It said it remains on track to deliver the €18mln cost savings announced in May.