C&C Group PLC, a leading premium drinks company, has issued a summary of its unaudited financial performance for the year ended 29 February 2024. The company expects to launch a second €15m share buyback and has proposed a final dividend of 3.97 cent per share. The financial overview for FY2024 indicates that net revenue is expected to be broadly in line with the prior year, despite the previously announced ERP disruption. The underlying operating profit is anticipated to be in line with market expectations. The company also highlighted exceptional items, including a €125m goodwill impairment and prior year adjustments impacting an expected €5m charge over three years.
The operational highlights include Tennent's and Bulmers brands gaining market share, with premium brands experiencing 24% volume growth in Great Britain. The company has restored service levels to pre-ERP implementation levels and has commenced a Transformation Project to drive group-wide efficiency. The current trading is in line with expectations, and the proposed final dividend of 3.97c per share reflects the strength of current and future cash flows. The company has also committed to returning €150m to shareholders by the end of FY27, with the current €15m share buyback program being successful and the next €15m tranche of buyback set to commence from 1 September 2024.
Despite a difficult market backdrop, the company is pleased with the performance of its brands in FY2024, with a strategic focus on premiumization. The company reported that Magners volumes in GB declined 18%, but it contributes modest profit to the Group. Reflecting the performance of the Magners brand in GB, the company expects to book a non-cash exceptional charge of €125m relating to a reduction in intangible assets (goodwill) associated with the C&C Brands CGU in the UK. The company also noted that the implementation of a complex ERP system upgrade in its Matthew Clark and Bibendum business had a material impact on the performance of the GB distribution business and the Group in FY2024. However, the company was able to restore service levels back to pre-ERP implementation levels.