Bulmers maker C&C latest to see profits boost

C&C Group makes Bulmers, Magners and Tennents among other brands

Bulmers maker C&C Group says it expects profits in the year to the end of February 2023 to have nearly doubled. It becomes the latest big corporation to see a spike in profitability during the peak of inflation.

C&C is due to publish its financial results for 2023 in May but issued a trading update on Thursday, saying it now expects to report a full year operating profit of €84m

That is up from €48m in 2022 but less than many analysts had forecast due to factors including the impact of a wave of strikes in Britain over the winter and higher technology spending.

In January C&C had said it expected an operating profit of between €84m and €88m for its current financial year but warned the cost-of-living crisis had a “potential significant impact” on its outlook.

The Irish stock-market listed drinks group, which also makes Scottish beer Tennents, now expects to recommence dividend payments to shareholders on the back of its improved balance sheet.

It will also evaluate the potential for further capital returns to shareholders.

The latest update now suggests net revenues for 2023 are expected to be approximately €1.685bn, an increase of 18pc on the previous year even though the volume of sale is only expected to be up 4pc.

C&C said its net debt has been cut to approximately €150m and a leverage multiple of 1.3x, compared with €271m and 3.4x at the end of its 2022 financial year.

In London, where the stock trades, C&C shares closed up 3.6pc on Thursday following the announcement.

C&C has manufacturing operations in Co Tipperary and in Glasgow. As well as Bulmers, Magners and Tennents, its brands include Five Lamps and Orchard Pig.

The group exports to over 40 countries.