C&C Group Annual Profit, Revenue Improve

C&C Group Plc (CCR.L), an Irish alcoholic and soft drinks company, on Wednesday reported a rise in earnings for the year to February 28, 2023, supported by an increase in revenue, reflecting volume growth of 4.2 percent.

For the 12-month period, the company registered a profit of 51.9 million euros or 13.2 cents per share, higher than 37.1 million euros or 9.9 cents per share of previous year. Excluding items, earnings were at 52.6 million euros as against 28.2 million euros a year ago.

Pre-tax income stood at 65.9 million euros, versus 45.7 million euros of last fiscal.

Operating income moved up to 83.9 million euros from 58.5 million euros a year ago.

Net revenues climbed to 1.689 billion euros from 1.438 billion euros of last year.

The Group will pay a final dividend of 3.79 cents per share on July 21, to shareholders of record on June 9. With this, the Group’s full year dividend will amount to 3.79 cents per share, compared with zero dividend of last fiscal.

During February, the company had implemented a complex ERP system upgrade in its Matthew Clark and Bibendum or MCB business. The implementation of this warehousing management technology is essential for the company’s digital transformation of GB operations. The implementation process has taken longer than originally envisaged, with a consequent material impact on service and profitability within MCB.

As announced on May 19, the Group currently expects a one-off impact of around 25 million euros associated with the ERP system disruption in the fiscal 2024, reflecting the cost associated with restoring service levels and lost revenue.

Looking ahead, the Group, said: “Excluding the impact on MCB, the Group is currently performing in line with management expectations for FY2024 and the Board is confident in the Group’s medium and long-term strategy and prospects…”

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