Underlying operating profit is expected to be in the range of €39m to €41m in the six months to August 31 this year. This follows the phased rebuilding of the profitability in the group’s distribution business following disruption to a new planning system upgrade last year.
Last year, the group reported an operating profit of €30.5m in the period following the impact of this disruption.
In an update published today, C&C said that net revenues were down around 3pc in the six-month period, driven by growth in the distribution business. Net revenues are expected to rise 2pc in the period.
Performance across core and premium brands was also in line with expectations. Tennent’s achieved volume and value share growth in the period following Euro 2024 marketing campaigns, while premium brands Menabrea and Orchard Pig recorded growth.
However, this performance was offset by the disposal of its NAB business in Ireland, lower contract brewing volumes and softer cider volumes in Great Britain.
C&C previously announced it intends to return at least €150m to shareholders over the next three financial years ending in February 2025, 2026 and 2027.
The group will also commence the second €15m tranche of its share buyback programme today.
The group has also restructured its trading relationship with Budweiser Brewing Group (BBG). From January 1, C&C will reassume control and distribution of its cider portfolio, including Magners, in Britain.
BBG will assume control and distribution of C&C’s beer portfolio in offtrade in Ireland.
The group has also started the recruitment process for a new chief executive.
In June, Patrick McMahon resigned from the CEO role after just a year in the job after the company said it had made a number of significant accounting adjustments dating back to a period when he was chief financial officer at the group.
C&C, which has manufacturing operations in Co Tipperary, owns Bulmers, Magners and Tennent’s, as well as brands such as Five Lamps and Orchard Pig.
The group exports its Magners and Tennent’s brands to over 40 countries.
The company reported a pre-tax loss of €111m for the year to the end of February this year, plunging from a profit before tax €52m the prior year.