C&C Group shares fell 3.6% to 167.5p in late morning trading on Wednesday following a reported a slowdown in on-trade momentum over Q2 2023 due to the impact of inflation on discretionary consumer spending in its pre-close trading statement.
The premium drinks company mentioned an expected HY1 2023 net revenue climb of 35% compared to last year, with expected net revenues of €900 million in the six months to 31 August 2022, broadly in line with comparable pre-Covid figures.
C&C Group also noted a projected operating profit range of €52-55 million against €16 million the year before and €64 million in HY1 2020.
The firm said trading through HY1 saw demand return “robustly” at the start of the term, however the impact of cost of living concerns resulted in a slowdown in trading momentum over Q2 2023.
Meanwhile, C&C Group confirmed an expected net debt to adjusted EBITDA of approximately 1.5 times at 31 August 2022, hitting its previously declared aim.
The company highlighted the further reduction in leverage multiple reflected the benefit of €43 million in proceeds from the first two tranches of three equal tranches from the sale of its interest in Admiral Taverns, along with good cash generation from the group over HY1 2023.
C&C Group added it intended to review the potential return of capital to shareholders including dividends in HY2 2023.