C&C - FY23 results

Davy Research
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C&C’s recent profit warning has clearly overshadowed the FY23 result. Nonetheless, key callouts from the FY23 result include (i) dividend reinstatement; (ii) significant progress on net debt reduction; (iii) market share gains for Tennent’s and Bulmers; and (iv) flat branded margins despite record cost inflation and brand reinvestment. Following the May 19th trading update, we intend to lower our FY24 EBIT forecast by €25m (estimated impact from system implementation challenges) to €55m. We will take a prudent stance on FY25 and lower our EBIT forecast from €93m to €80m.