Skip to main content
The Markets by Proactive
Go to Proactive UK
Proactive UK has moved. Proactive’s coverage of London’s small caps continues on proactiveinvestors.com Go there →
Advertisement
The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
Advertisement
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Food & drink

C&C Group shares fizz as trading recovery offsets cut in guidance

Good debt repayment rates and shielding from rising costs helps offset priced-in Omicron earnings knock

Shares in C&C Group PLC (LSE:CCR) gained after the drinks group revealed trading rebounded after the easing of Coronavirus (COVID-19) restrictions and predicted new measures would shield it from rising inflation.

The comments offset the Bulmers and Tenants distributor cutting its operating profit foreacast to €45-€47mln for this financial year, down from €50-€55mln guidance issued in January due to Omicron.

Trading recovered in February with direct delivered outlets operating at 81% of pre-COVID levels, following a challenging January period.

The company also said it would be relatively shielded from some aspects of rising input costs this year.

“Our focus continues to be on ensuring that we provide market leading service for our brands and partnership brands to our customers as trading recovers,” the company said in a statement.

“We are operating in an evolving inflationary cost environment, however we are afforded a degree of protection through our successfully executed €18m cost reduction plan, our recent price increases and input cost hedging.”

The company also cut net debt significantly, falling to €263mln from €442mln last year and adding some resilience to its balance sheet.

Shares in C&C Group were up 5.21% to 200p.

Advertisement
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK