Tennent’s owner C&C Group said it is trading in line with forecast despite first half net revenue coming in 4% below last year because of distribution changes.
In a trading update it said underlying operating profit is anticipated to be between €41.5 million and €42m.
Core brands Tennent’s and Bulmers showed revenue growth, while efforts to revitalise Magners UK have begun after its control was transferred back to C&C Group in January.
The Dublin-based company, headed by former AG Barr boss Roger White, has completed the latest €15 million tranche of a €150m share buyback programme that began on 1 May. To date, €84m has been distributed to shareholders since the start of this financial year.
The company said: “Despite the challenging macroeconomic backdrop, we will continue to invest in the business to improve performance, support growth and ensure we deliver for all our customers and consumers.
“Our immediate priorities remain to focus on winning new customers by delivering on our service, range and value proposition, growing market share of core brands, and driving the simplification programme to deliver efficiency across the organisation.
“Whilst the macroeconomic environment remains challenging and we have the all-important Christmas trading period ahead of us, we remain on track to achieve operating profit in line with market expectations.”
The company has initiated a search for a new CFO after Andrew Andrea announced he is taking up a similar role at Domino’s Pizza Group.
Mr Andrea will remain in his current position until the completion of the current financial year, with his departure planned no later than 13 March.
Deutsche Bank issued a new note following the update, stating: “As previously indicated, we believe that C&C is in a much more stable position than it has been for some time and think that new management should be able to leverage the platform to drive the anticipated profit recovery.”
See also:
Interview: Roger White
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