Magners maker C&C is going cap in hand to investors for EUR 151 million

Ireland | The maker of Magners and Bulmers cider, the Irish C&C Group, unveiled plans to tap shareholders for cash, as it swung to an annual loss because of the pandemic.

The group recorded a pre-tax loss of EUR 121 million (USD 147 million) for the year to 28 February 2021, from a profit of nearly EUR 12 million the previous year. The loss came as a direct result of the pandemic which had shuttered pubs and restaurants for large parts of the past year, decimating on-premise demand for its drinks.

Turnover dropped 56 percent to EUR 737 million (USD 893 million), with around 80 percent of its sales coming from the hospitality sector before the pandemic.

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C&C announced it hopes to raise around GBP 151 million (USD 213 million) through a rights issue to reduce debts and boost its balance sheet in the face of “trading uncertainty”.

The group’s debt pile swelled to EUR 362 million (USD 439 million) from EUR 234 million in 2019.

The group also has a minority investment in Admiral Taverns, a 1,000-strong pub chain across the UK, which suffered amid lockdowns and restrictions.

But C&C said trading was starting to bounce back after the reopening of hospitality on 7 June. This permitted half of Ireland’s pubs to re-open as not all have outside seating. Indoor dining in pubs and restaurants is due to return on 5 July, while international travel is scheduled to be back on 19 July.

Support for the on-premise

In early June, Heineken Ireland launched a EUR 10 million (USD 12 million) support programme for publicans and hotels. The “Fresh Beginnings” initiative provides financial supports, such as help with building outdoor structures, and a “welcome back” fund for pub and bar staff.

It also said it would give its own employees EUR 250 (USD 303) each to act as a stimulus for pubs and restaurants around the country.

Production at its Lady’s Well brewery in Cork has ramped up in recent weeks. Headbrewer PJ Tierney said it is great to see the brewery busy again. There were times over the past 12 months when the brewery was silent. He also disclosed that some 220 000 full kegs were returned to the brewery, where they were either used for animal feed and fertilizers, or for anaerobic digestion. Reportedly, none of the beer went to drain.