Bulmers cider firm C&C sales rise despite 'consumer backdrop'

Brewer says it has fixed most costs for rest of financial year

Bulmers cider maker C&C says revenues rose 6% in the three months to the end of June.

C&C, the maker of Bulmers cider and Tennent's Lager, said it was so far navigating the inflation crisis by managing its costs. 

In an update, the brewer and distributor said "despite the consumer backdrop", revenues rose 6% in the three months to the end of June, ahead of the summer when it generates a significant amount of sales.  

It said it had fixed most of its business costs for the rest of its financial year but was wary of "the potential impacts of this on both our cost base and the pressures being faced by consumers, which could impact future demand". 

C&C shares, which trade in London, closed 1.5% higher on Thursday. However, they have fallen since the start of the year amid investors' concerns about sales of consumer products during the cost-of-living crisis in Britain and Ireland.

Currys

Meanwhile, electricals retailer Currys beat annual profit expectations, sending its shares up 10%. It said it would cap prices of dozens of products to win market share as consumers cut spending.

It reported adjusted pretax profit of £186m (€220m) for the year to the end of April. The London-headquartered retailer, which sells a wide range of products from mobile phones to refrigerators, forecast a 2022-2023 profit of up to £150m citing uncertainty about consumer spending.

Currys chief executive Alex Baldock: 'Whilst Currys expects medium-term margin growth to slow, the fact there might be growth at all is being rewarded.' Picture: Oliver Holms/Dixons Carphone/PA

Despite forecasting lower profits and margin pressures, Currys said it expects to continue generating cash this year.

"Inflation is very likely to create a headwind to consumer spending and impact sales, particularly in some of our more discretionary categories," said chief executive Alex Baldock. 

"Markets seemed poised for hefty guidance downgrades, so whilst Currys expects medium-term margin growth to slow, the fact there might be growth at all is being rewarded," Hargreaves analyst Matt Britzman said in a note.

AO World

Rival AO World, which in April also warned on profits this year, said this week it would raise £40m in new equity to bolster its finances after its stock took a tumble this week on cash crunch fears. 

• Additional reporting Reuters