C&C’s (CCR) portfolio of owned and exclusive brands remained resilient in the face of increasing competition in FY2019, as Bulmers, Magners and Tennent’s saw revenue growth of 5.5 per cent in their key home markets. Boosted by the acquisition of Matthew Clark and Bibendum (MCB), adjusted cash profits increased by almost a fifth to £120m.
In the off-trade market, strong local brand recognition enabled Tennent’s to capture a further 2 per cent market share in the Scottish grocery channel, as price-led competitors were more adversely affected by minimum unit pricing legislation. Leveraging MCB’s status as top distributor to UK licensed on-trade, the group hopes to increase the rate of sales of its beer and cider brands in the on-trade market.
At almost 8 per cent of branded revenues, super-premium and craft is tapping into consumers’ "increasing desire for choice, quality and premium products" – the division saw volume growth of 46.2 per cent. Since the acquisition of MCB, UK distribution points for the premium portfolio have increased by 46 per cent to 1,240.
Analysts at Goodbody forecast cash profits of €122m and EPS of 26.5¢ this year, rising to €135m and 30.1¢ in 2020.
| C&C GROUP (CCR) | ||||
| ORD PRICE: | 367¢ | MARKET VALUE: | £1.14bn | |
| TOUCH: | 366-367¢ | 12-MONTH HIGH: | 367¢ | LOW: 260¢ |
| DIVIDEND YIELD: | 4.2% | PE RATIO: | 16 | |
| NET ASSET VALUE: | 193¢* | NET DEBT: | 50.4% | |
| Year to 28 Feb | Turnover (€bn) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
| 2015 | 0.99 | -67.8 | -24.5 | 11.50 |
| 2016 | 0.95 | 56.3 | 14.4 | 13.65 |
| 2017 | 0.86 | -62.9 | -23.5 | 14.33 |
| 2018** | 0.81 | 85.5 | 25.8 | 14.58 |
| 2019 | 2.00 | 81.8 | 23.4 | 15.31 |
| % change | +146 | -4 | -9 | +5 |
| Ex-div: | 30 May | |||
| Payment: | 19 Jul | |||
| *Includes intangible assets of £684m, or 220p a share **Restated | ||||
