C&C Group PLC (LSE:CCR) has said it expects the second half of the year to be challenging as inflationary pressures impact its margins and the rising cost of living continues to squeeze consumers.
The gloomy outlook accompanied strong first-half results from the drinks company which showed operating profit of €54.9mln in the six months to 31 August 2022, up from €15.5mln in the same period a year earlier, while its operating margin rose to 6.1% from 2.3%.
The group behind the Magners and Tennent’s brands saw net revenue jump by 35.6% to €903mln, driven by volume growth of over 11% and price/mix growth of more than 25%.
However, in September net revenue fell by 5% due to the tough economic climate and C&C chief executive officer David Forde cautioned that “the outlook for H2 is challenging with inflationary pressures on our own margins as well as those of our customers, and the cost of living pressures on the consumer environment in the near-term".
On the bright side, this year will see the first unrestricted Christmas trading period for three years, in addition to the upcoming FIFA World Cup.
Forde said the company’s focus “is on ensuring the highest standards of service and stock availability over this period and beyond”.
C&C shares fell 1.5% to 162.99p in morning trade.