C&C shares jump on upbeat outlook in run-up to Brexit
SHARES of drinks group C&C rose more than 5pc yesterday, after the company released its latest trading forecasts and said it was well positioned to deal with the political uncertainty of Brexit.
The company saw its earnings rise 20pc.
C&C bought UK distributor Matthew Clark and the Bibendum wine business in 2018. The remainder of C&C's business includes major brands such as Bulmers and Magners.
"Operational delivery and customer service at both Matthew Clark and Bibendum have been very strong and ahead of plan," the company said in a statement.
"We therefore anticipate that their combined financial contribution will be as guided at our half-year results on 25 October 2018."
The stock was trading at €3.11 after the statement and the company is rated "outperform" by Cantor Fitzgerald Ireland. "Firstly, C&C's core business has returned to growth driven by a combination of volume and price gains," Darren McKinley, senior equity analyst at the firm, said in a research report.
"Secondly, unlike with previous acquisitions we believe that C&C management have added significant value via acquiring Matthew Clarke and Bibendum."
At a time when the British economy is suffering from the uncertainties surrounding Brexit, C&C said it could deliver on its plans.
"In Scotland and Ireland our combination of leading brands and distribution assets is highly resilient, cash generative and delivering growth.
"With a strong balance sheet and normalised cash flow conversion of 60-70pc of EBITDA we are poised to provide enhanced shareholder returns."