Irish drinks firm C&C Group has reported a 'solid underlying performance' in the first half of its financial year ended 31 August 2023, driven by its branded business segment.
Net revenue for the period was broadly inline with the year-ago period, while branded revenues increased 6.9% year on year, the company added.
The company's premium beer portfolio saw revenue growth of 23.1% and volume growth of 16.8%.
Operating profit for the period amounted to €30.5 million, down €22.8 million year on year, due to a one-off impact.
C&C Group's GB distribution business achieved a breakeven in the first half amid a challenging environment.
The company's branded business saw operating profit up 4.6% to €25.2 million, while margins were 14.5% as pricing actions offset most of the inflationary impacts on the group’s cost base.
Commenting on the company's performance, Patrick McMahon, chief executive officer of C&C Group said, "We have made significant progress in restoring customer service levels following the ERP system implementation issues in our GB distribution business within our planned timeframe."
C&C Group expects operating environment challenges and cost pressure to persist over the next 12 months.
The company added that it aims to distribute €150 million to shareholders over the next three fiscal years while maintaining leverage target of 1.5x to 2.0x.
McMahon added, "Delivering outstanding service, winning customers, continued business simplification and improved operating efficiency remain our top priorities and focus for the second half."