C&C Says Its December Sales Lagged Expectations
Bulmers cider manufacturer C&C Group Plc has said that its December sales lagged expectations, as renewed COVID-19 curbs in the UK and Ireland due to rising cases of the Omicron variant of COVID-19 hurt beverage supplies to restaurants and pubs.
Earnings For Second Half Of Fiscal 2022 Warning
The Dublin-based producer of Bulmers cider and Tennent's beer also cautioned that earnings for the second half of fiscal 2022 would depend on how the curbs progress.
C&C, however, added that it had managed to eke out a "modest profit" during the holiday month, thanks to its cost cutting drive.
Number Of Shoppers And Government Advice
The number of shoppers in Britain deteriorated sharply in December, while government advice for people to limit social contacts in the run-up to Christmas left pubs and restaurants largely empty during what should be one of their busiest periods.
Robust Third Quarter
Cost cuts, along with the return of customers to hospitality venues during the September-November period and higher prices of drinks helped C&C witness a robust third quarter, it said.
December Beverage Volumes To "On-Trade" Customers
In December, C&C managed to deliver just 64% of beverage volumes to "on-trade" customers, compared with an expectation of 90%.
Annual Operating Profit Expectation
The company had said in October that it expected annual operating profit of €50 million to €55 million for fiscal 2022.