C&C Group PLC, a leading premium drinks company, has issued a trading update, reporting resilient trading performance over the Christmas period. The company's Branded Net Revenue saw a 6% increase, while Distribution Net Revenue experienced a 3% decrease in the 10-month period leading up to December 2023. Despite challenging market conditions, the company expects its full-year underlying operating profit for FY2024 to be in line with current market expectations.
The company's commitment to delivering market-leading customer service was reflected in its industry-leading service levels in the GB distribution business over the Christmas trading period. C&C Group PLC remains focused on mitigating inflationary impacts, improving operating efficiency, simplifying its business, and gaining customers as its operating priorities in the medium term.
With increasing confidence in the medium-term outlook for the business and its strong cash generation capabilities, the Board reaffirms its intention to distribute up to €150 million to shareholders over the next three fiscal years while maintaining the Group's leverage target of 1.5x to 2.0x. The company plans to issue full-year FY2024 results in May 2024.
C&C Group PLC is a FTSE 250 company headquartered in Dublin and is listed on the London Stock Exchange. The company's portfolio of owned/exclusive brands includes Bulmers, Tennent's, Magners, Heverlee, Menabrea, Five Lamps, and Orchard Pig. C&C Group exports its Magners and Tennent's brands to over 40 countries worldwide and operates as the No.1 drinks distributor to the UK and Ireland hospitality sectors.
This announcement includes forward-looking statements concerning current expectations about future financial performance and economic and market conditions. However, these statements are subject to risks and uncertainties, including those factors discussed in the company's FY2023 Annual Report that could cause actual results to differ materially from those anticipated.