Drinks maker C&C Group has reported full-year revenue of €1.44 billion in its full-year to 28 February 2022, a near doubling of its revenue the previous year (€765.8 million).
The loosening of trading restrictions linked to COVID-19 was the core driver of the 87.8% revenue growth reported by the Tennent's and Magners maker, with on-trade net revenue rising by 207.8% year-on-year, it added.
Despite the reopening of the on-trade, the group's off-trade business also remained 'strong' during the year, with a 3.4% decline in net revenue to €376.3 million.
Its Bulmers and Tennent's brands have grown off-trade brand volume share, by 330bps and 110bps respectively, compared with before the pandemic, it noted.
“Following a period of unprecedented challenges for the hospitality sector, we are delighted to be back serving our customers and delivering our iconic and much-loved brands to our on-trade and off-trade partners," commented C&C chief executive David Forde.
"Encouraged by the reaction and resilience of the industry, we are pleased with how trading has recovered and the subsequent strength of customer and consumer demand, which we believe reflects the enduring importance of the on-trade and the role that it plays in our society."
Operating profit for the year came in at €47.9 million, compared to a €63.6 million loss the previous year, while free cash flow was €28.4 million.
The group added that it has been able to manage the current inflationary environment through a combination of a €18 million cost reduction plan, input cost hedging and the implementation of price increases in November of last year.
Evolving Inflationary Environment
"Looking forward, we are operating in an evolving and challenging inflationary cost environment and will continue to monitor this closely over FY2023 and beyond," said Forde.
"We have already taken action to afford the business a degree of protection, nevertheless we are susceptible to further increases in our cost base which would necessitate further price increases. Despite the current positive sentiment in the hospitality sector post reopening, we are mindful of the pressures being faced by consumers and its potential impact on future demand."
© 2022 European Supermarket Magazine – your source for the latest Drinks news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.