Pub reopenings drag C&C back into profit

C&C, the Bulmers cider owner, has posted an operating profit of €16m for the six months to the end of August. T

Drinks group C&C returned to profit, as expected, in the first half of its current financial year, buoyed by the reopening of the hospitality sectors in Ireland and the UK.

The Bulmers cider owner has posted an operating profit of €16m for the six months to the end of August. That compares to a loss of €13.2m for the corresponding period a year ago.

First-half revenue surged by 65% to €657.3m and C&C managed to cut its debt from €371.4m to just under €246m.

The strong first-half performance was mainly driven by the reopening of pubs and bars in C&C’s core markets of the UK and Ireland – in May and July, respectively. 

While off-trade sales have impressed, 80% of C&C’s revenues come from pub and on-trade sales. A forced boom in staycation holidays, good weather and the European Championships football tournament also boosted sales.

“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,” said C&C chief executive David Forde.

C&C said it expects to generate full-year operating profits of €50m-€55m, with that target being reliant on no further Covid-related disruptions to trading.