Social maker

Beer maker C&C warns of further downturn in viruses slowing December sales

A pint of beer is poured into a glass at a bar in London, Britain June 27, 2018. REUTERS / Peter Nicholls / File Photo

Register now for FREE and unlimited access to Reuters.com

Register

Jan. 7 (Reuters) – Irish beverage maker C&C Group Plc (GCC.L) said on Friday its December sales fell behind expectations as further restrictions in the UK and Ireland due to the Rising cases of the Omicron coronavirus variant are damaging the beverage supply to restaurants and pubs.

Dublin-based producer of Bulmers cider and Tivez’s beer also warned that second half of fiscal 2022 profits would be dependent on the restrictions pushing ahead, sending its London-listed shares down 3.6% to start. Exchanges.

C&C, however, added that it had managed to generate a “modest profit” during the holiday month, thanks to its cost-cutting policy.

Register now for FREE and unlimited access to Reuters.com

Register

The number of shoppers in Britain deteriorated sharply in December, as government advice for people to limit social contact in the run-up to Christmas left pubs and restaurants largely empty during what is expected to be one of their busiest times.

Cost cuts, along with returning customers to hospitality locations during the September-November period and rising beverage prices helped C&C experience a strong third quarter, he said.

In December, C&C only managed to deliver 64% of beverage volumes to on-trade customers, compared to an expectation of 90%.

The company said in October that it projected annual operating profit of 50 to 55 million euros ($ 56.5 to 62.2 million) for fiscal 2022.

($ 1 = 0.8845 euros)

Register now for FREE and unlimited access to Reuters.com

Register

Report by Muhammed Husain and Pushkala Aripaka in Bengaluru; Editing by Rashmi Aich

Our Standards: Thomson Reuters Trust Principles.