Drinks group C&C said its branded business saw an "encouraging" performance in the early part of its fiscal year, building on growth achieved during the previous year, with net sales revenue up 10% in the four months to the end of June.
In a trading update issued ahead of its AGM today, C&C said its net sales revenue rose by 10% in the four months to the end of June.
Net sales revenue of its core brands - Bulmers and Tennent's - were up 9% in the same period, with each brand continuing to grow category share, it added.
C&C manufactures, markets and distributes branded beer, cider, wine, spirits and soft drinks across Ireland and the UK and it includes Bulmers and Magners cider, Tennent's and Five Lamps beer and Tipperary Water among its brands.
C&C also said today it was seeing progress in resolving the Enterprise Resource Planning (ERP) system implementation issues in its GB distribution business, with service levels steadily improving.
"The ERP system implementation is a key step in the digital transformation and optimisation of the business, which will enable the consolidation and standardisation of processes across the group, drive efficiencies, improve automation, improve customer experience, and provide a platform for digital commerce," the company added.
The company said its strong balance sheet and free cash flow generation capabilities are reflected in the reinstatement of a dividend of 3.79 cents per share for 2023, subject to shareholder approval at today’s AGM.
"The potential for returns of capital will be kept under review having regard to a range of factors including wider economic indicators, market conditions and progress in restoring margins," the company added.
Patrick McMahon, C&C's chief executive, said the company was pleased with the start its branded business has made to the year.
"However, the group's performance is not at the level we planned, because of the ERP issues, and resolving them fully including the permanent restoration of " On Time in Full" (OTIF) metrics, remains our immediate objective and focus," he added.
The company also said its process to recruit a new Group Chief Financial Officer continues and an update will be provided in due course.
