C&C Group, the maker of drinks Magners, Bulmers and Tennent’s, has started its new financial year in a positive vain with a jump in sales thanks to an “encouraging performance” from its branded business.
Over the four months to 30 June, net sales revenue for its branded business was up 10%, with core brands, mainly Tennent’s and Bulmers, up 9% and gaining category share.
The company also hailed progress in resolving the Enterprise Resource Planning (ERP) system implementation issues in its UK distribution business – outlined in the preliminary results in May – with service levels “steadily improving”.
“While this progress is consistent with our immediate objectives, we continue to target further improvements to On Time in Full (‘OTIF’) metrics consistent with our aim to deliver outstanding service to our customers,” C&C said.
It noted that the ERP system implementation is a key step in the digital transformation and optimisation of the business, which will enable the consolidation and standardisation of processes across the group.
Patrick McMahon, Chief Executive, commented: “We are pleased with the start our branded business has made in FY2024. We are also reporting progress on the resolution of the ERP system implementation issues. However, the Group’s performance is not at the level we planned, because of the ERP issues, and resolving them fully, including the permanent restoration of OTIF metrics, remains our immediate objective and focus”.
