C&C Group (CCR) H2 2024 earnings summary

Executive summary

• Net revenue for FY2024 was €1,652.5m, down 1.5% on a constant currency basis compared to FY2023, with operating profit before exceptional items at €60.0m and an operating loss after exceptional items of €84.4m.

• The year was significantly impacted by exceptional costs of €144.4m, including a €125.0m non-cash goodwill impairment for the Magners brand, €7.6m in restructuring costs, and €10.4m in ERP implementation costs.

• After taxation and exceptional items, the loss for the year was €113.5m, compared to a profit of €40.3m in FY2023; net loss per share was 29.0 cent (FY2023: profit of 10.3 cent per share).

• The company restored service levels following ERP system challenges, with customer feedback indicating industry-leading service during key trading periods.

• Branded net revenue increased by 4.1% to €312.7m, and branded operating profit rose by 12.3% to €44.6m, with Bulmers and Tennent's gaining market share.

Financial highlights

• Net revenue: €1,652.5m (down 1.5% constant currency).

• Operating profit before exceptional items: €60.0m (down from €82.6m in FY2023).

• Operating loss after exceptional items: €84.4m.

• Net loss: €113.5m (FY2023: profit of €40.3m).

• Adjusted diluted EPS: 8.1 cent; basic EPS: (29.0) cent.

• Free cash flow: €85.6m; free cash flow conversion (excluding exceptional items): 91.4%.

• Net debt including leases: €168.0m; leverage (Net Debt/Adjusted EBITDA): 1.8x.

• Liquidity: €390.1m.

Outlook and guidance

• Trading in Q1 FY2025 has been encouraging and in line with expectations.

• No change to expected earnings for FY2025 and future years; cautious consumer outlook but positive market dynamics.

• Intention to return €50m to shareholders in FY2025 through dividends and share buybacks.

• Board reaffirms plan to distribute up to €150m to shareholders over FY2025–FY2027.