Drinks group C&C said it is operating in a challenging inflationary environment and remains vigilant on the potential impacts of this on both its cost base and the pressures being faced by consumers.

It said this could impact future demand.

In a trading update ahead of its AGM today, C&C said a significant proportion of its manufacturing input costs are fixed for the fiscal year.

It said it will continue to "proactively manage" its cost base, while assessing any necessary price increases to recover inflation pressure across the business as the year progresses.

C&C also reported a "solid" trading performance for the three months from March 1 to June 30.

It said that despite the inflation backdrop, net revenues are 6% ahead of pre Covid-19 levels for the four month period as it begins our busy summer trading period.

C&C manufactures, markets and distributes branded beer, cider, wine, spirits and soft drinks across Ireland and the UK. Its brands include Bulmers and Magners cider, Tennents and Five Lamps beer and Tipperary Water.

C&C also said that after four years as Chair of the group and 10 years on the C&C board, Stewart Gilliland is not seeking re-election and will be succeeded by Ralph Findlay, subject to shareholder approval, at today's AGM.

Ralph Findlay, Chair designate of C&C Group, said that during Mr Gilliland's time as chair, the group transformed into the leading final-mile distributor to the on-trade in the UK and Ireland, while navigating the business through the most challenging period in the industry's history.

"The group has iconic brands, a leading distribution network and a strong capital structure to sustain its future growth ambitions," he said.

"I look forward to playing a role in driving the future success of the business for all our stakeholders including customers, consumers, employees and shareholders," he added.