Bulmers-owner C&C warns of further price increases in battle with rising costs
C&C said recent price increases, a hedging, and savings 'have provided a degree of protection against cost inflation'.
C&C, the Bulmers and Tennent's owner, said it would likely be forced to increase prices further as it battles with rising costs.
The warning came as it unveiled an operating profit of €47.9m in the 12 months to the end of February, as revenues surged to more than €1.4bn, after the end of Covid restrictions for hospitality outlets in Ireland and Britain.
"The benefit of no on-trade restrictions, easing of the pressures on supply chains and additional public holidays has created a more positive trading environment over recent months," the drinks company said.
The London-traded shares surged 5%, but remain below their level at the start of the year.
On the surge in costs, C&C said recent price increases, a hedging, and savings "have provided a degree of protection against cost inflation".
"However, additional input cost pressure, particularly at our manufacturing facilities, will likely necessitate further price increases," it warned, adding it still plans to invest in its brands in the coming months, but was "vigilant" of the economic backdrop for consumer spending and price inflation.
C&C also said it was selling its minority stake in Admiral Taverns, a UK pubs group, to Proprium Capital Partners for €65.8m in cash, and has struck a long-term supply agreement with the pubs.
