Drinks group C&C encouraging first-half performance report

Drinks group C&C reported an “encouraging” first-half performance in Ireland and Scotland as sales of its branded drinks in these markets increased.

In a trading update, the company revealed that sales for its branded businesses were up 6 per cent in the six months to the end of August.

Headquartered at Bulmer House in Crumlin, C&C now expects to deliver net revenue of around €870m for the period, down 1 per cent from the same time last year.

A strong start to summer was followed by poor weather in July and August, the group said. It also pointed to lingering cost-of-living issues, particularly in the UK markets.

Operating profit is expected to be around €29m to €31m.

The group’s operating profit for the period includes the one-off impact which came as a result of a disruption to a new planning system upgrade in its British distribution business.

In May, C&C issued a profit warning after it incurred a one-off charge of €25m due to issues implementing a new Enterprise Resource Planning (ERP) system.

The group said good progress has been made in resolving the issues. On Time in Full (OTIF) delivery metrics have now returned to levels last seen before the implementation of the system.

Chief executive Patrick McMahon, who was appointed to the role in May, said the company was happy with the internal progress.

“We are particularly pleased with the progress we have made in restoring customer service levels following the ERP system implementation issues in our GB distribution business within our planned timeframe,” he said.

“Delivering outstanding service, winning back customers, continued business simplification and improved operating efficiency remain our top priorities and focus for the second half.”

The company said it is now recruiting a new group chief financial officer to replace Mr McMahon who previously held the position until earlier this year.

For full access to all content on Echo.ie and to support the continuation of local news and local journalism in your community subscribe HERE.

Thanks for your ongoing support.