H1 FY2018 Presentation - C&C Group › wp-content › uploads › 2018 › ... · C&C Group plc | Slide 9 233 226 150.0 175.0 200.0 225.0 250.0 FY2017 Core brands NSV (global) Tennent's

FY2018 Results16 May, 2018

C&C Group plc | Slide 2C&C Group plc | Slide 2

Disclaimer

This presentation has been prepared solely in connection with the financial results of C&C Group plc (the "Company") for the period ended 28 February, 2018 andshould be read in conjunction with the announcement of the financial results of the Company for the period ended 28 February, 2018, released 16 May, 2018 (the“FY2018 Preliminary Results Announcement”). For the purposes of this notice, the presentation that follows shall mean and include the slides that follow, the oralpresentation of the slides by the Company, the question-and-answer session that follows that oral presentation, hard and electronic copies of this document andany materials distributed at, or in connection with, that presentation.

This presentation is not intended to and does not constitute or form part of any offer, or invitation, or solicitation of any offer to issue, underwrite, subscribe for, orotherwise acquire or dispose of any shares or other securities of the Company in any jurisdiction or an inducement to enter into investment activity. No part of thispresentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decisionwhatsoever.

The presentation contains forward-looking statements, including statements about the Company's intentions, beliefs and expectations. These statements are basedon the Company's current plans, estimates and projections, as well as the Company's expectations of external conditions and events. Forward-looking statementsinvolve inherent risks and uncertainties, are based on certain assumptions and speak only as of the date they are made. The Company undertakes no duty to andwill not necessarily update any such statements in light of new information or future events, except to the extent required by any applicable law or regulation.Recipients of this presentation are therefore cautioned that a number of important factors could cause actual results or outcomes to differ materially from thoseexpressed in any forward-looking statements.

Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser.

Your attention is drawn to the ‘Principal Risks and Uncertainties’ set out on page 20 of the Company’s FY2018 Preliminary Results Announcement. The risksdescribed, however, are not exhaustive and there may be other risks which may have an adverse effect on the business, financial condition, results or futureprospects of the Company.

Bulmers Ltd of Clonmel, Ireland, a company within the C&C Group, owns the trade mark BULMERS® in the Republic of Ireland. Bulmers Ltd is not connected with HPBulmer Ltd of Hereford, UK. BULMERS ® Original Vintage Cider produced by Bulmers Ltd of Clonmel, Ireland is sold outside the Republic of Ireland under the nameMAGNERS® Original Irish Cider.

For further information see www.candcgroupplc.com


FY2018 | Performance Overview

€86.1 millionOperating Profit, before €1.2m of associate income (mainly Admiral)

Down 7.0%

€548.2 millionNet RevenuesDown 4.9%

2.37xNet Debt to EBITDA

Strong balance sheet & pension schemes in surplus

€70.8 millionFree cash flow (Pre-exceptionals)

70.5% Conversion of EBITDA

€33 millionShare buyback in FY2018

€163 million share buyback over last 3 years

€53 millionInvestment in Craft Brands & Admiral Taverns

Supported by strong balance sheet & underlying cashflow

15.7%Operating Margin

Down 40bps

€241.5 millionUK & Ireland Branded Net Revenues

Up 0.8%

1. Share buy-backs excl. stamp duty and commissions Jan15-Apr18


Strategic & Operational Highlights

➢ Resilient performance across our branded portfolio in UK and Ireland

➢ Strengthened route-to-market across the UK

➢ Built momentum through first year of AB InBev cider distribution agreement

➢ Strong performance in our Scottish businesses; Tennent’s driving share growth and revenues+5%; wholesale volumes, customers and revenues up

➢ Bulmers brand investment grew share in the off-trade and held share in packaged on-trade;competition remains intense in draught

➢ Strong organic growth in super-premium and craft with volumes +41%

➢ Up-tiering distribution with proven partners in International

Year of stabilisation and strategic investments

Stable base to capitalise on opportunities

FY2018

FINANCIAL

REVIEW


Summary Financials

Year-on-year performance (constant currency) FY2018 FY2017 Variance %

Group volumes (kHL)

- of which Branded (UK & Ireland)

4,221

2,545

4,570

2,538

(7.6%)

+0.3%

Group net sales revenues (€’m)

- of which Branded (UK & Ireland)

548.2

241.5

576.2

239.6

(4.9%)

+0.8%

Operating profits (€’m)

- operating margin (%)

Share of equity accounted investments (€’m)

86.1

15.7%

1.2

92.6

16.1%

-

(7.0%)

(40 bps)

Net finance costs

Income tax expense

- Effective tax rate (%)*

(8.1)

(11.3)

14.3%

(7.7)

(12.8)

15.1%

(5.2%)

+11.7%

80bps

Profit after tax (pre-exceptionals) (€’m) 67.9 74.2 (8.7%)

Weighted average number of shares, incl. options (diluted) 308.4 311.4 (1.0%)

Adjusted fully diluted EPS 22.0 23.2 (5.2%)

* pre-exceptionals


4,570

(194)

4,217

+52

(14)(45)

+41

3500

3750

4000

4250

4500

4750

1

(159)

Volume

kHL

* Includes drinks wholesaling, ABI Beer, Wines, NABs and on-going own label

1. Benefits from 32.7 kHL of Orchard Pig volumes acquired in the period

(30)

GB and Ireland

branded volumes

+0.3%

4,221


Net Revenue

€m

596.5

(20.3)

(14.9)

(6.1)

555.2

(4.5)

+ 7.2

(0.9)

(7.2) (1.6)

548.2

450.0

475.0

500.0

525.0

550.0

575.0

600.0 GB and Ireland

branded revenues

+0.8%

* Includes drinks wholesaling,ABI beer, wines, NABs and on-going and own label

1. Benefits from €4.1m of Orchard Pig revenues acquired in the period

1


233

226

150.0

175.0

200.0

225.0

250.0

FY2017 Corebrands NSV

(global)

Tennent'svolume

Tennent'sprice/mix

Bulmersvolume

Bulmersprice/mix

Magnersvolume

Magnersprice/mix

FY2018 Corebrands NSV

(global)

1

• Volumes flat through AB InBev, positive in Scotland and Export, but lower in US and NI

• NSV rate deflation –7.7% reflecting distribution margin and mix

• Can (70%) v bottle mix trend has continued (FY17: 61%)

• Volumes flat on a global basis, but outperforming market in Scotland

• NSV rate inflation +4.3%, driven by innovation/premiumisation and positive pricing environment

• On-trade volume losses, only partially off-set by growth in off-trade channel

• Pricing environment remains positive• NSV rate deflation -0.9%, reflecting

channel mix shift from draught to small pack off-trade

1. FY2017 core brands revenue (globally) adjusted for constant currency

-8.7%-6.4%+ 3.7%

€m


95.0

(2.4)

(5.0)

87.6

+1.6

(0.8)(2.9)

+0.7

86.1

70

75

80

85

90

95

100

(0.1)

Operating Profit (before exceptionals)

€m

1. Benefits from €0.5m of Orchard Pig trading profit acquired in the period, off-set by the negative profit impact of €1.0m of lost own label contracts as a result of Shepton closure

1


16.1%

15.7%

14.0%

14.5%

15.0%

15.5%

16.0%

16.5%

17.0%

FY2017 FY2018

Operating Margin

Margin Drivers

• Business mix

- Branded revenues -2.1%

- Other revenues -7.6%

• Cost savings

• Channel and pack mix

- Bulmers (Off/On-trade)

- Magners (Glass/Can)

• Distribution margin on UK cider

• Loss of direct supply accounts in Ireland (negative 50bps of margin)

• Additional marketing investment in Ireland

Po

siti

veN

ega

tive

-40bps1

1. FY2017 comparative adjusted for constant currency

1


86.1

+14.3

(8.3)

+0.6

(5.9)

(6.4)

(10.3)(1.2)

(4.8)

70.866.0

30

50

70

90

110

FCF70.5%

EBITDA

100.4

+1.9

Free Cash flow

€m


Net Debt

(170.6)

+66.0

(40.6)

(33.1)

(54.5)

(237.6)

(250.0)

(200.0)

(150.0)

(100.0)

(50.0)

0.0

Net debt28 Feb 2017

Free cash flow Dividends paid Share Buyback Share options Acquisitions Translation and other Net debt28 Feb 2018

Net Debt to EBITDA

2.37x

€m

(6.8)

+2.0

FY2018

SEGMENTAL

REVIEW


Segmental Review | Great Britain

Scotland

• Strong performance from Tennent’s driven by:- Investment in social media, sponsorship, new fount roll-out- Pack innovation and premiumisation

• Independent free trade grew customers, share and value

• Wholesale distribution business strengthened:- Customer numbers +2% YoY- Volumes +3% YoY

• Well positioned for Minimum Unit Pricing (May 2018)

C&C Brands

• Transitioned to new distribution arrangements with AB InBev

• Gathered momentum through the second half: Magners +9% (H1: -6%)

• Long term opportunity for our brands under this partnership

• Continued growth in craft and super-premium- UK-wide craft off-trade distribution points1: 5,691 (March 2017: 350)

Volumes 2,576kHL (1.3%)

Net Revenues €293m +2.2%

EBIT €39.5m +3.9%

Note 1: Menabrea, Heverlee, Pabst, Caledonia Ales only; excludes Orchard Pig)


Segmental Review | Ireland

Market Overview

• LAD market remains highly competitive in Ireland- multiple new launches in beer and cider

Segmental Review

• Increased investment behind the Bulmers brand:- brand health scores remain strong

• Growth in off-trade counteracted by loss of draft distribution

• Bulmers total volumes on and off-trade down 6% YoY

• Craft and super-premium portfolio growth:- Five Lamps +134% YoY (ROI); Heverlee +18%

• One-off impact of revised distribution agreement with AB InBev

Volumes 1,324kHL (5.8%)

Net Revenues €215m (5.5%)

EBIT €40.1m (6.7%)


Segmental Review: International

North America

• Effective 1 April 2018, resuming full responsibility for the sales and marketing of our brands in the US

• Cider brands negatively impacted by declines in the overall cider market

• Magners and Wyders volumes stabilising

• Branded portfolio down 25%; poor performance of cider brands Woodchuck and Gumption

Volume 321kHL (11.1%)

Net Revenues €41m (14.6%)

EBIT €6.5m (1.5%)

Note 1: Excluding discontinued Tennent’s; changes in India and Africa

Export

• Consolidated and strengthened our international distributor network

• Up-tiered relationships with; ABI (Italy & China), Coca-Cola Amatil(Australia), Karlsberg (Germany)

• Magners volumes were flat at 100kHL in our export markets

• Tennent’s brand continues to make good progress globally;vols of 52kHL up 2% YoY


Growing Super-Premium & Craft PortfolioIn

no

vati

on

Age

ncy

Cra

ft

In house innovation & brand development

Exclusive UK and/or ROI distribution of quality imports

Partnerships with Local craft

1

52.5 kHL

107.6 kHL

FY2017 FY2018

Organic growth+41.3%

1. In RoI only 2. Acquired May 2017; contributed 33 kHL

2

✓ Launch of Heverlee in off-trade (UK & Ireland)

✓ UK-wide distribution

✓ Menabrea +55% in GB

✓ Rights to San Miguel in Ireland

✓ Secured rights to Tsingtao (UK & ROI)

✓ Acquisition of Orchard Pig

✓ Further investment in 5 Lamps

✓ 5 Lamps now in 303 pubs in Dublin

Current Portfolio FY2018 Highlights

Volume Growth

✓ High margin

✓ High ROIC

✓ UK-wide opportunity

FY2019 Potential


Investment and Innovation in Tennent’s…..

New design

Value added packs at key price points

Premiumisation


Minimum Unit Pricing

• Came into force 01 May 2018

• Tennent’s and Magners performed well in pre-MUP range reviews

- Increased shelf space, some category rationalisation already evident (eg. Carling de-lists);

- Our range recommendations based on consumer research broadly accepted by retailers “MUP-ready”

• Tennent’s: 4pk, 10pk and 15pk strategy has seen significant distribution gains; and

- improved relative on shelf pricing relative to competition, who have not responded proactively to the legislation

• Magners: enjoys commercial price advantage over (higher ABV) competition

• Cautious consumer reaction; 4pk consumption has gone from 33% to 51%

INSERT CHARTS FROM NORMAN’S UPDATE.


48%

17%

35%

Ireland | Bulmers Performance

• Cider category more subdued -0.5%

• Bulmers volumes -6%; against strong comparatives +3%

• Brand scores remain strong (see Appendix)

• C&C growth in off-trade channel, but off-set by lost distribution points and share in Draught

• Significant launch activity across LAD

28%

11%61%

On-Trade Packaged On-Trade Draught Off-Trade

-0.5%

1. RoI total cider category volume by channel - 12 months to February 2018; Nielsen Ireland Databases2. RoI total cider category by volume- 12 months MAT share: Nielsen Ireland Databases

90% 88% 85%

Feb '16 Feb '17 Feb '18

On-Trade: Packaged2

91% 77% 69%

Feb '16 Feb '17 Feb'18

On-Trade: Draught2

ROI: Total cider category by channel147% 47% 47%

Feb '16 Feb '17 Feb'18

Off-Trade2

C&C total share: 57%

By Volume By Value

-0.6%


Admiral Taverns | Update

• Completion: 6 December 2017

• Like-for-like EBITDA +0.8% (3 months to February 2018)

• Acquisition of 17 pubs from Star Pubs & Bars; estate now 844, net of disposals

• EBITDA per pub +4.3%

• Working with Admiral management on appropriate brand opportunities

The Albert, Albert St, Hebden Bridge HX7 8AH, UK

The Nelson, Mudeford, Christchurch BH23 3NJ, UK

FY2018

MATTHEW

CLARK

UPDATE


MCB | Background to acquisition

Summary Timeline: Conviviality Group

‒ 08 March: Guides EBITDA 20% below market expectations

‒ 13 March: Confirms EBITDA guidance of £55.3m-£56.4m

‒ 14 March: Liability of approx. £30m due to HMRC –shares suspended

‒ 21 March: £125m equity raise initiated EBITDA £45.5m-£46.0m

‒ 29 March: Notice of intention to appoint administrators

‒ Easter Weekend

‒ 04 April: C&C announces acquisition of Matthew Clark Bibendum

Status of MCB

➢ On stop from key major suppliers

➢ Had been on cash with order (CWO) for some weeks (accounts payable overstated)

➢ Fuel cards/credit cards stopped

➢ Long lead time wines not ordered

➢ Credit insurance void

➢ Administration planned for after the Easter weekend


MCB | Transaction structure

Summary terms

✓Nominal consideration for shares

✓c. £135m of short term debt and

overdue tax liabilities

✓Providing sufficient funds to support

on-going working capital requirements

✓Investment funded from existing C&C

facilities

✓AB InBev providing modest financial

support to the transaction


MCB | Priorities going forward

Priorities

Stabilisation Simplification Optimisation

Customer Service

✓ Stock availability > 90%✓ Volumes and distribution points are returning towards prior year

levels✓ OTIF 85% (On acquisition: 53%)✓ Dynamic customer service survey

Progress to date

Control Environment

✓ 52 week cashflow forecasting exercise completed✓ Daily service and cash calls✓ Reconciliation of Top 20 suppliers✓ Alix Partners and EY to be appointed for Apr18 audit

Creditors/Suppliers

✓ Agreed HMRC repayment schedule✓ Normal credit terms with c. 75% of suppliers, in discussion on

repayment schedules✓ On-going discussions credit insurers

Management and employees

✓ New, experienced management team appointed, including strong Finance Directors

✓ Continuous communication with employees

1

2

3

4

H2 FY19 FY20


Provisional opening Balance Sheet (as at 04/04/18)1 £’m £’m

Fixed assets, intangibles and non-current assets

9.2

Stock 56.3

Trade Debtors 163.8

Other Debtors 21.1

Trade Creditors (166.3)

Excise duty, VAT and other taxes (51.5)

Other creditors , accruals and deferred income

(29.3)

Net current liabilities (5.9)

Non-current liabilities (11.8)

Net liabilities (8.5)

MCB | Opening balances

1. Post an initial view on fair value adjustments. All balances remain subject to

further review and audit.

Non-current assets

✓ Fixed assets c. £4.4m

✓ All acquired goodwill written-off as FVA

Stock

✓ Not far from appropriate levels , but key SKUs out-of-stocks

✓ Some FVAs for slow-moving lines

Trade debtors

✓ FVA taken against overdue balances

Creditors

✓ Excise duty and VAT line includes c. £36m of overdue balances

✓ £102m payable to the three Conviviality banks over next 12 months

OUTLOOK


Current Trading & Outlook

Current Trading

• Solid start to FY19; trading in line

FY2019 Outlook

• Volume growth through AB InBev and Admiral

• Grow value in Tennent’s (incl. MUP) and Super-Premium portfolio

• Continued competitive pressure in Ireland, but profit stabilisation in FY19

• Matthew Clark – first priority is stabilisation

Medium Term Outlook

- Growth drivers in place: Tennent’s; craft and super-premium; AB InBev; Admiral

- Matthew Clark – move to simplification and optimisation opportunities

- Cash generation and de-lever towards 2.0x Net Debt/EBITDA

Resilient business, strong cash conversion, strategic growth drivers now in place

Q&A

APPENDIX


Tennent’s investment…..

• >5000 installations

• 40% growth in social media engagement

Font roll out programme

Social media

Sponsorship

• Tennent’s sponsors Scottish rugby


…leading to improved Tennent’s performance

€76.7

€80.8

FY2017 FY2018

….plus revenue growth

+5.3%

1. Constant currency

1

Brand strength and…

….growing rate performance

0

2

4

6

8

10

12

14

Tennent’s Lager

Peroni Stella Artois Guinness Strongbow Magners Budweiser Hobgoblin Bulmers OldSpeckled

Hen

1 2 3 4 5 6 7 8 9 10

YouGov Purchase Intent - Scotland

1

No.#


Wholesale back in growth | GB

FY2017 FY2018

Wholesale GB Net Revenue Growth

1. Constant currency

Year-on-Year Growth of Wholesale customers……..

….volume growth through FY’18 1

-3.00%

-1.00%

1.00%

3.00%

5.00%

7.00% Rolling 12-week volumes y-on-y % change

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500FY2017 FY2018


Cider Brand Image | Ireland

Brand Affinity'Is a brand for me’

Brand Affinity'Is becoming more popular with

younger drinkers’

Prompted Awareness

1. Source: Company commissioned market research conducted by Ipsos MRBI (2015) and Behaviour & Attitudes in 2017

30%

13%

2015 2017

50%

23%

16%

32%28%

2015 2017

40%43%

50%

91%

57%

2015 2017

98%

81%

18%

Key:


Core Brand Investment | Bulmers

1. Brand Health Dipstick Average scores on 5 key questions 18-24 age group – September 20162. Source: Company commissioned market research conducted by Ipsos MRBI (2015) and Behaviour & Attitudes in 2017

Brand Health Scores1

Top 3 LAD brands in ROI

19

25

42

Brand Salience2

'A brand I’ve heard good things about’

46%

54%

2015 2017

Brand Affinity2

‘Popular with younger Drinkers’

32%

40%

2015 2017


FY2017 FY2018

GB Cider

• Good 1st year of AB InBev cider distribution agreement

• Slow start, but momentum built through year

• (Magners H2: +9%; H1 -6%) and against strong comparatives)

• Magners performed well in range reviews with major retailers

• Extended distribution reach, especially in convenience and wholesale

• Magners is +12% in Nielsen MATs to Feb18 for Impulse

• Good performance by K Cider

• enhanced distribution, particularly in convenience

• Good contribution from Orchard Pig1 acquisition +0.3%ABI: Flat

Scotland IFT: +3.2%

Other cider brands

-18%

1 Orchard Pig acquired April 2017, contributing 33kHL to FY18. Sales, marketing and distribution retained by C&C Group during FY18, but will pass to AB InBev during FY19.

+19%

GB cider volumes

+3.6%

https://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjw_4jguIHXAhUBI8AKHYbgCZUQjRwIBw&url=https://www.redbubble.com/people/lauried/works/21926797-k-cider-logo?p%3Dsticker&psig=AOvVaw07ovrs3VOaI2jQlejhfVDU&ust=1508665943684513


Premium Portfolio Development

Initial investment in

2012

Acquired 100%

Launched in Scottish and

Irish Off-trade

Secure UK & Ireland rights

Launched in Scottish and Ireland on-

trade

Secure exclusive

rights to UK & Ireland

Launched in UK & Ireland

Initial investment

for 25%

Initial investment

in 2012

JV investment

with William Bros

Note: Calendar years

Prior 2013 2014 2015 2016 2017 2018

Exclusive distribution UK & Ireland

Launch of Irish Ales


International | Continued Progress

North America

132 kHL(25%) YoY

Asia21 kHL

+6% YoY

Aus/NZ19 kHL

+51% YoY

EMEA148 kHL(3%) YoY


Matthew Clark Bibendum

Business Overview

✓ Matthew Clark is the largest independent distributor to the UK on-trade drinks sector;

✓ Range of over 4,000 products, including beers, wines, spirits, cider and soft drinks, sourced from in excess of 300 suppliers; nationwide distribution network of 18 depots and sales team of over 250 serving the independent free trade and national accounts as well as a state-of-the-art on-line ordering system;

✓ Matthew Clark also has a number of exclusive distribution agreements for third party products (mainly wines) into the UK market and also has a limited range of own brand wines;

✓ Bibendum is one of the largest wine, spirits and craft beer distributors and wholesalers to the UK on-trade and off-trade, with a particular focus on wine;

Strategic Rationale

✓ Create the leading independent route-to-market network across the British Isles, alongside C&C’s existing drinks wholesaling businesses in the UK and Ireland;

✓ Provide direct access to an incremental c.23,000 pre-dominantly on-trade customers across the UK comprising leading hotels, restaurants, pubs, clubs, and bars;

✓ Enhance access for C&C’s cider and super-premium brands across the on and off-trade in the UK;

✓ Strengthen the combined Group’s procurement, supply and distribution capabilities


MCB | Operating KPIs

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

OT OTIF Stock SL

Stock

✓ Good progress in re-stocking depots

✓ Top 400 SKUs at 93% availability

Customers

✓ Key accounts supportive

✓ OTIF of 85% (at acquisition: 53%), still work to do

Suppliers

✓ Key suppliers supportive; discussions on payment plans continue

Employees & Management

✓ Employees highly motivated

✓ David Phillips appointed MD / Alistair Harrison FD at MCW

✓ Michael Saunders appointed at Bibendum

Operational KPIs – all depots since acquisition


Geographic splits (constant currency)

€m Great Britain

Constant currency(i) FY2018 FY2017 Change %Scotland C&C

BrandsGB Scotland C&C

BrandsGB Scotland C&C

BrandsGB

Revenue 307.5 152.3 459.8 294.9 145.8 440.7 +4.3% +4.5% +4.3%

Net Revenue 211.5 81.2 292.7 201.7 84.6 286.3 +4.9% (4.0%) +2.2%- Price / mix impact +6.0% (2.6%) +3.5%- Volume impact (1.1%) (1.4%) (1.3%)

Operating profit(ii) 32.6 6.9 39.5 31.0 7.0 38.0 +5.2% (1.4%) +3.9%Operating margin 15.4% 8.5% 13.5% 15.4% 8.3% 13.3% 0bps +20bps +20bps

Volume – (kHL) 1,378 1,198 2,576 1,394 1,216 2,610 (1.1%) (1.5%) (1.3%)- of which Tennent’s 1,017 1,019 (0.2%)- of which Magners 520 518 +0.4%



€m International

Constant currency(i) FY2018 FY2017 Change %

Export North America

Int’l Export North America

Int’l Export North America

Int’l

Revenue 22.0 19.6 41.6 23.6 25.3 48.9 (6.8%) (22.5%) (14.9%)

Net Revenue 21.9 18.6 40.5 23.5 23.9 47.4 (6.8%) (22.2%) (14.6%)

- Price / mix impact (9.0%) (2.8%) (3.5%)

- Volume impact +2.2% (25.0%) (11.1%)

Operating profit(ii) 5.1 1.4 6.5 5.9 0.7 6.6 (13.6%) +100.0% (1.5%)

Operating margin 23.3% 7.5% 16.0% 25.1% 2.9% 13.9% (180bps) +460bps +210bps

Volume – (kHL) 189 132 321 185 176 361 +2.2% (25.0%) (11.1%)



€m Ireland

Constant currency(i)

FY2018 FY2017

Underlying*

Change

Underlying*

FY2017

CC(i)

% CC(i)

Revenue 312.1 326.6 (4.4%) 341.5

Net revenue 215.0 227.6 (5.5%) 242.5

- Price / mix impact +0.3%

- Volume impact (5.8%)

Operating profit(ii) 40.1 43.0 (6.7%) 48.0

Operating margin (Net revenue) 18.7% 18.9% (20bps) 19.8%

Total volume – (kHL) 1,324 1,405 (5.8%) 1,599

- of which Bulmers – (kHL) 386 409 (5.6%) 409

* Underlying FY17 comparatives adjusted for: (i) constant currency(i) (FY2017: revenues €3.5 million, net revenues €2.9million; operating profit €0.7 million); (ii) the impact of certain AB InBev beer volumes in Ireland in the comparativeperiod which transferred to direct supply under the terms of our revised distribution arrangements with AB InBev(FY17: volumes 194kHl; revenues €14.9 million; net revenues €14.9 million; operating profit €5.0 million).

Documents

H1 FY2018 Presentation - C&C Group › wp-content › uploads › 2018 › ... · C&C Group plc | Slide 9 233 226 150.0 175.0 200.0 225.0 250.0 FY2017 Core brands NSV (global) Tennent's