Drinks group C&C has reported lower revenues and operating profits for the six months to the end of August due to the disruption of its ERP System implementation in its UK operations.
C&C said its net revenue for the six month period fell by 1.2% to €872.5m from €883.4m, while its operating profits dropped by 42.8% to €30.5m from €53.3m.
It noted that its GB distribution business broke even despite the challenges of the ERP System implementation disruption.
C&C manufactures, markets and distributes branded beer, cider, wine, spirits and soft drinks across Ireland and the UK and its brands include Bulmers and Magners cider, Tennents and Five Lamps beer and Tipperary Water.
The company said that revenue in its Ireland division rose by 8% to €161.8m from €149.8m while operating profits rose by 5.3% to €19.8m from €18.8m the same time last year.
C&C said the summer period in Ireland was challenging from a weather perspective, but despite this its Bulmers cider brand's net revenue increased by 6.8%, adding that sustained investment behind the Bulmers brand continued.
It said its sustained investment programme continues to bear fruit as evidenced by the brand's growth in market share. Bulmers MAT total cider volume share is at 59.8% which is up 0.4 points on the same time last year, while the Bulmers brand MAT off-trade cider volume share has grown year-on-year to 57.5% - up significantly on pre Covid-19 levels.
C&C said that between the on and off-trades, Bulmers clearly remains the largest and most popular cider brand in Ireland.
In the UK, C&C said Tennent's outperformed the market in the first half of the year with MAT volumes up 9.1% year-on-year. Tennent’s share of total on-trade beer in Scotland is now 40.2%, it added.
But Magners volume was down 12.8% in the period with revenue down 7.9%.
C&C said that inclement weather disproportionately impacted the overall cider category with volumes down 14.7% in the four-week period to August 12 compared to the same time last year.
C&C said that reflecting the board's confidence in the business and its strong cash generation characteristics, it intends to distribute up to €150m to shareholders over the next three fiscal years, through dividends and other capital returns.
Patrick McMahon, C&C's Group CEO, said that set against a difficult market backdrop the company was pleased with the strength of the performance of its branded businesses in Ireland and Scotland in the period.
"We have made significant progress in restoring customer service levels following the ERP system implementation issues in our GB distribution business within our planned timeframe," Mr McMahon said.
"Delivering outstanding service, winning customers, continued business simplification and improved operating efficiency remain our top priorities and focus for the second half," he added.
