Bulmers owner C&C burns through €7m a month while pubs are closed
C&C Group, the owner of Bulmers and Magners cider, revealed this morning that it is burning through €7m (£6.2m) each month that pubs and restaurants are closed.
C&C, which makes 80 per cent of its revenue through sales to pubs, bars and restaurants, also reported €47.6m in exceptional items directly related to the coronavirus outbreak.
However, the FTSE 250 drinks producer said supermarket sales had soared during the coronavirus lockdown.
Bulmers total sales fell 16 per cent in April and May, but off-trade sales increased 62 per cent, while Magners sales fell seven per cent overall but increased 25 per cent in off-trade.
C&C interim executive chairman Stewart Gilliland: “The ongoing closure of the hospitality sector has material implications for our business and earnings potential, with approximately 80 per cent of our revenue derived from the on-trade channel.
“An emerging trend from this shutdown however has been an immediate shift in consumption dynamics, resulting in increased demand in the off-trade channel.
“To capitalise on this behavioural shift, we have reallocated resources behind our take-home proposition and seek to optimise our business model in this channel.”
Net revenue in the year to the end of February was up 7.8 per cent to €1.7bn, C&C announced this morning.
Meanwhile operating profit jumped 10.4 per cent to €116.4m.