C&C earnings ‘in line with expectations’ despite headwinds

Group said it remains confident in achieving its earnings expectations, adding that it will reflect "significant growth" relative to the previous year

C&C also announced the appointment of IDA chair Feargal O’Rourke as an independent non-executive director. 

Drinks group C&C said its earnings so far this year are in line with expectations despite poor weather conditions recorded in June.

In an update shared ahead of the group’s AGM later today, the company said it remains confident in achieving its earnings expectations for the full year ending next February, adding that it will reflect "significant growth" relative to the previous year.

The group said it will also commence the second €15m tranche of its share buyback programme in September. C&C previously outlined plans to return at least €150m to shareholders over the next three financial years.

Its previous share buyback scheme, which began in March, has been completed, the company added.

The directors have also proposed a final dividend of 3.97 cents per share, which is subject to shareholder approval at today’s meeting.

C&C also announced the appointment of IDA chair Feargal O’Rourke as an independent non-executive director, with the move coming as part of the board’s ongoing programme of “refreshment and renewal.” 

This is separate from the group’s recent engagement with Engine Capital, it added, who previously called for the sale of the beer and cider business. 

In June, the hedge fund, which owns just under 5% of C&C, said it believed the company was undervalued and pushed for C&C’s board to initiate a strategic review process aimed at a sale.

Following this, C&C made a deal with the fund to appoint a new non-executive director with capital markets expertise to its board from an agreed list.

Engine Capital said it would withdraw the two nominees it had planned to put forward for election at today’s meeting, adding that it would agree to all resolutions at the meeting.

C&C owns Bulmers, Magners and Tennent’s, as well as brands such as Five Lamps and Orchard Pig.

It will also publish a half-year trading update next month.