C&C's Posts 56% Annual Revenues Decline In Full Year Results
Bulmers' parent C&C has reported a 56% slump in revenues and an operating loss for the year to the end of February, which it said was a direct result of the impact of COVID-19.
The drinks giant, also reported off-trade growth of 14.2% in the period, as consumers switched to at-home drinking.
Net revenue for the year was €736.9 million (down from €1.68 billion the previous year), with the business posting an operating loss of €59.6 million, compared to a profit of €118.6 million in 2020, largely due to exceptional charges related to the pandemic.
With approximately 80% of C&C’s pre COVID-19 net revenue derived from the hospitality sector, the pandemic has had an unprecedented impact on the group.
"Thanks to the prompt and decisive action of our team and our resilient business model, we have successfully navigated these challenges to date. We implemented responses to the near-term challenges to maximise liquidity, support customers, reduce costs and fulfil off-trade demand from the immediate change in consumption dynamics," said David Forde, group chief executive officer, C&C.
"Our top priority continues to be protecting all our stakeholders. Their health and wellbeing are of paramount importance to the success of C&C. As the hospitality sector recovers from COVID-19, we will continue to be flexible in our approach and work with our customers who will face challenges as trade reopens and support them through collaboration with our suppliers and partners," he added.
EBITDA (In Euros)
With outdoor as well as restricted indoor hospitality once again reopened in the UK, C&C has said it has been able to respond quickly to rapidly evolving demand with outlets traded with for the week ending 16 May 2021 at 65% of the same week in 2019.
In addition, Irish hospitality is due to reopen from early June 2021.
"Our business model was proven during FY2021 as, during the periods of on-trade restrictions easing, we returned to profit and cash generation. C&C’s brand strength was demonstrated by our core brands growing off-trade share, reflecting their special relationship to the consumers they serve," Forde said.
"We will build on this as the hospitality sector reopens, targeting cider share growth and building our share in premium beer which we continue to see as a significant market opportunity, he added.
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