White outlines C&C plan, Kingfisher to guide retail sales – Daily Business

2 days ago admin

*Tennent’s is part of the Dublin-based C&C group (pic: @Tennentslager X)*

Former AG Barr chief Roger White will this week unveil his “exciting plans” for Tennent’s owner C&C when he delivers his first results statement since joining the Dublin-based company as CEO in January.

Shares in the UK-listed group, which is also home to Bulmers and Magners cider lager, fell sharply after he said in March that underlying EBIT for the year will be €76-78m, “modestly below” its targets.

Mr White said at the time: “There is much work to be done to fully realise the potential across the group.

“Whilst the market backdrop remains challenging, we are continuing to support our customers, invest in the business and have some exciting plans to implement this year.”

C&C posts annual figures on Wednesday and progress is expected to be offset by the impact of the company’s moves to offload its soft drinks business in Ireland, quit “low-margin” contract brewing contracts and “softer” cider sales in the UK.

Its plans are likely to include a “relaunch”of the Magners brand.

Kingfisher figures to guide retail outlook

Retailers have been blessed with fine weather that has spurred a spring rally and early summer shopping which has helped the sector mitigate higher costs from National Insurance contributions, wages, utilities and raw materials.

As AJ Bell analysts observe: “Those same wage increases continue to exceed inflation and could thus bring in customers, either through the door or online, while the dry spring weather is helping demand in some areas of DIY, notably anything garden related, even if Grafton and Topps Tiles have both suggested that the repair and maintenance market remains subdued.”

However, B&Q owner Kingfisher, which delivers a Q1 update on Wednesday, posted a 7% fall in full-year profit before tax in March and CEO Thierry Garnier has quantified the annualised hit from salaries and National Insurance contributions in the UK at £31 million, with £14m in extra costs in its stores in France.

There are expectations of a ninth consecutive year-on-year decline in like-for-like sales, but Kingfisher is expected to return to growth from the second quarter onwards.

The board has pencilled in adjusted PBT between £480m to £540m this year, against £528m last time, with analysts forecasting £512m. The full-year dividend is likely to come in flat at 12.4p a share for the fifth year running.

DIARY

Tuesday 27 May

Wednesday 28 May