C&C Group Iimpacted by COVID-19 as it reports interim loss
C&C Group, the vertically integrated premium drinks company which manufactures, markets and distributes branded beer, cider, wine, spirits and soft drinks across the UK and Ireland, has reported an operating loss, before exceptional items, of €11.7 million for the six months ended 31 August 2020 as net revenue declined by 55.4% to €386.7 million. COVID-19 and its outbreak have impacted customers, the entire drinks and hospitality sector and C&C Group’s financial performance.
However, C&C Group returned to profit generation in July and August as the on-trade slowly started to reopen and the strong demand in the off-trade continued. C&C Group’s core brands – Bulmers, the leading Irish cider brand; Tennent’s, the leading Scottish beer brand; and Magners, the premium international cider – performed relatively well given the circumstances with share growth a feature across all three.
Headquartered in Dublin, C&C Group operates owned brand and contract manufacturing/packing operations in Ireland, Scotland and the US. It is the leading drinks distributor to the UK and Ireland hospitality sectors. Operating under the Matthew Clark, Bibendum, Tennent’s and C&C Gleeson brands, the group supplies over 35,000 pubs, bars, restaurants and hotels, and is a key route-to-market for major international beverage companies. C&C Group also has an investment in the Admiral Taverns tenanted pub group, which owns about 950 pubs across England and Wales.
Stewart Gilliland, Interim Executive Chairman of C&C Group, commented: “Driven by strong demand in the off-trade and the gradual reopening of the on-trade in our core markets, the business returned to profit generation in July through to September. The outbreak of COVID-19 coincided with our financial year end and has meant that the entire six month performance was impacted. Although we expect the pace of recovery will continue to vary, as the largest independent alcohol distributor across the UK and Ireland, our business is structurally integral to the markets we serve. Our near term focus is securing our position and enhancing the performance of the business, while positioning C&C to deliver for customers and shareholders over the long term.”
The group maintains a robust liquidity position with available liquidity of €415.4 million at the end of August 2020. Working capital has been tightly managed and C&C Group is well placed to fund the business through this unprecedented time.
