C&C Group PLC (LSE:CCR) returned to an an interim operating profit and expects to remain in the black for the full year as the hospitality industry continues to recover.
The maker and distributor of alcoholic drinks delivered 93% of 2019 volumes last month and forecast a full-year operating profit of €50-55mln, "assuming current trading conditions prevail".
READ: C&C sees a return to profit ahead of plan
In the six months ended 31 August, operating profit came in at €16mln compared with a €13mln loss last year, with revenue soaring 65% to €657mln.
Net debt and cash were €245mln and €474mln respectively at the end of August.
A cost-cutting programme by The Tennent’s owner generated savings of €9mln in the half-year. The target is to deliver €18m annualised savings in 2022.
“We have been partly insulated from the on-going UK capacity constraints due to driver shortages through our network being owned and operated in-house, in addition to the advantages afforded by our leading scale and reach,” chief executive David Forde said.
“This has allowed us to broadly meet demand over the peak summer trading period, ensuring we put our brands and our partner’s brands in the hands of the consumers who enjoy them.”
Shares jumped 7% to 266p early on Thursday.