Drinks group C&C said its earnings in the first half of its financial year have been in line with expectations.
In a trading update for the six months to the end of August, the company said its net revenues are expected to be 3% lower due to the impact from the disposal of its NAB business in Ireland, lower contract brewing volumes and softer cider volumes in the UK.
This was partly offset by growth in its Matthew Clark & Bibendum business and an in-line performance across its core and premium brands.
It said its underlying operating profit is expected in the range of €39m-€41m, in line with its expectations, mainly due to the phased rebuilding of its distribution business profitability following last year's ERP disruption.
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.
Its CEO Patrick McMahon in June said he was stepping down from his role with immediate effect following accounting errors at the company.
C&C had announced that accounting "adjustments" were expected to be made in respect of inventory and balance sheet items.
Mr McMahon was Chief Financial Officer during the periods to which these adjustments relate and acknowledged that the relevant shortcomings occurred at a time when he had overall responsibility for the group's finance function.
In today's trading statement, C&C said its Tennent's brand saw volume and value share growth over the latest 12-weeks, supported by targeted marketing campaigns around the Euro 2024 tournament and, despite mixed summer weather, Bulmers outperformed the cider market in Ireland.
It also said its Premium beer and cider brands, driven by Menabrea and Orchard Pig, continued to perform strongly, reporting double digit revenue growth.
C&C said the performance in its Matthew Clark and Bibendum business has also been encouraging with net revenues expected to be 2% higher.
Recovery from lost distribution customers has been strong, it noted, with distribution points for Matthew Clark and Bibendum in August 10% higher compared to the same time month last year.
The company also said today that it and Budweiser Brewing Group, which is owned by Anheuser-Busch InBev (AB InBev) have mutually agreed to restructure elements of its trading relationship.
From January 2025, C&C will reassume control and distribution of its cider portfolio, including Magners, in Great Britain.
AB InBev will also assume control and distribution of its beer portfolio in the Off Trade in the Republic of Ireland.
"Bringing the sales, trade marketing and distribution responsibilities in house will provide both companies with the opportunity to strengthen their respective brand portfolios and distribution platforms," C&C said.
C&C also reaffirmed its intention to distribute at least €150m to shareholders over three years and said the second €15m tranche of its share buyback programme will start today.
