Beer and cider maker C&C Group has reported a 65% increase in H1 net revenue, to €657.3 million, following the reopening of the hospitality sector in its key markets.
Following a positive trading update last month, the group said that it returned to profitability in June, following the easing of on-trade restrictions related to the COVID-19 pandemic.
Adjusted EBITDA for the half-year period stood at €30.8 million (up from €3.8 million the previous year), while operating profit was €16 million, compared to a loss of €13.2 million in H1 2020.
Back Serving Customers
“Following the easing of on-trade restrictions over H1 FY2022, we are delighted to be back serving our customers and consumers in both indoor and outdoor hospitality across our core markets of the UK and Ireland," commented David Forde, chief executive.
"We are encouraged by how quickly the on-trade recovered, and we are pleased to report that trading in the first half has been ahead of plan and our inherent cash generating strengths are reflected in the return of the business to cash generation from June 2021."
The group said that its exposure to increasing input costs has been 'well managed' in the half-year period, with modest exposure expected in the second half of the year.
This has led the business to implement price increases across its GB customer base, from October 2021. The group added that it has also 'effectively managed' number of other issues relating to a shortage of drivers and CO2, noting that it is 'self-sufficient' in terms of the latter.
Return To 2019 Levels
As of September 2021, C&C Group was serving 89% of the outlets that it served in the pre-pandemic period of 2019, while volumes are at 93% of 2019 levels.
It expects to deliver full-year operating profit in the range of €50 million to €55 million, it added.
"We entered the second half in a good position, and we are focused on continuing to build a better business by developing brand and system strength, while navigating the near-term capacity constraints the industry faces," said Forde.