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Drinks supplier and distributor C&C Group has insisted it remains on track to hit annual financial forecasts and bounce back from a troubled period despite poor weather in June.
Ahead of its AGM today, the group said earnings in its financial year so far had remained in line with expectations “despite the well-documented poor weather in June”.
The group said it remained confident of achieving its earnings expectations for the full year, reflecting significant growth relative to the previous financial year.
C&C’s troubled 2023/24 financial year saw it fall to a pre-tax loss of €111m in the year to 29 February compared with a profit of €52m a year earlier, while its CEO Patrick McMahon departed over historic accounting errors.
At its delayed results, the group pledged to deliver at least €150m to shareholders over the next three years ending in February 2025, 2026, and 2027 through share buybacks, dividends and special dividends.
It stared a €15m share buyback programme on 1 March 2024, which has been completed and said it will commence the second tranche shortly.
It has also proposed a final dividend of 3.97 cents per share.
Meanwhile, C&C Group has announced Feargal O’Rourke will join the board as an independent, non-executive director at the conclusion of today’s AGM.
O’Rourke, who will sit on C&C Group’s audit committee, retired from professional services firm PwC in October 2023 where he had worked in a variety of roles over a 37 year career with the firm.
In January 2024, he was appointed by Ireland’s minister for enterprise, trade & employment as chair of IDA Ireland, the semi-state body that promotes foreign direct investment into Ireland.
Ralph Findlay, C&C group chair & CEO, commented: “Feargal brings valuable expertise to C&C having advised companies on a broad range of corporate, financial and taxation considerations over a long and esteemed career in PwC. We look forward to the contribution he will make to the C&C board in the period ahead as we pursue our strategic, financial and ESG ambitions.”
O’Rourke added: “With its iconic brands and leading distribution platform, I am delighted to join C&C and support the board to deliver its ambitious medium and long-term targets.”
The appointment of O’Rourke is part of the board’s ongoing programme of refreshment and renewal.
C&C Group said this process pre-dated recent engagement with Engine Capital and did not impact the recently announced agreement to appoint a new non-executive director to the board.
In an open letter in June, Engine Capital – which owns 5% of the Dublin-headquartered drinks group – described C&C Group as a “perennial underperformer” that had been blighted by “structural and self-inflicted problems”.
It called on C&C’s board to conduct a review of strategic alternatives, including a sale of the business.
C&C Group will update the market on first half trading on 9 September.
Morning update
The FTSE 100 is up 0.1% at 8,286.1pts so far this morning.
Risers include PZ Cussons, up 1.7% to 103.9p, C&C Group, up 1.5% to 153.8p and Diageo, up 1.3% to 2,502p.
Fallers include Deliveroo, down 2.2% to 149.7p, Virgin Wines, down 1.4% to 43.9p and AG Barr, down 0.9% to 632.1p.
Yesterday in the City
The FTSE 100 rose another 0.6% yesterday back to 8,281.1pts on lower than expected inflation data in the UK and US.
Risers yesterday included Hilton Food Group, up 4.9% to 950p, Kerry Group, up 3.4% to €86.40, Marks & Spencer, up 3% to 327p, DS Smith, up 2.7% to 456.8p, McBride, up 2% to 125p and Deliveroo, up 2% to 153p.
The day’s fallers included Coca-Cola Europacific Partners, down 1.5% to €68.00, PZ Cussons, down 0.6% to 102.2p and Greencore, down 0.3% to 175p.
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