C&C confident of meeting forecast, O'Rourke appointed

15-Aug-2024 - Last updated on 15-Aug-2024 at 09:06 GMT

On board: former PwC man Feargal O'Rourke was at the company for 37 years

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C&C Group, the Irish drinks distributor and manufacturer, has announced it remains confident of achieving its earnings expectations for its financial year and has appointed Feargal O’Rourke as an independent, non-executive director.

The business said group earnings have been in line with expectations in the financial year-to-date, despite the well-documented poor weather in June – which it will detail in its FY25 half-year trading update on 9 September.

C&C added: “We remain confident of achieving our earnings expectations for the full year, reflecting significant growth relative to FY24, and reaffirm our commitment to recommence our second €15m tranche of our share buyback programme from 1 September.”

C&C owns Tennent’s, Magners and Bulmers, Matthew Clark, Bibendum Wine and Walker & Wodehouse, among others.

The group previously communicated its intention to deliver at least €150m to shareholders over the next three years ending in February 2025, 2026 and 2027 through an appropriate mix of share buybacks, dividends and special dividends depending on prevailing circumstances.

C&C commenced a €15m share buyback programme on 1 March 2024, which has now been completed.

Rigorous process

The business will commence the second tranche shortly. Subject to shareholder approval, directors have also proposed a final dividend of 3.97% per share. An interim dividend of 1.89% per share was paid in December, making a full year dividend of 5.86 cents per share.

Upon his appointment, O’Rourke will also become a member of the audit committee. The appointment of O’Rourke follows a “rigorous process” to recruit a new non-executive director led by the nomination committee with the support of an independent executive search firm.

The board is reviewing the composition of its committees and will announce an update to committee membership in due course.

C&C Group chair and CEO Ralph Findlay said: “Feargal brings valuable expertise to C&C having advised companies on a broad range of corporate, financial and taxation considerations over a long and esteemed career in PwC.

“We look forward to the contribution he will make to the C&C board in the period ahead as we pursue our strategic, financial and ESG (Environmental, Social and Governance) ambitions.”

Ambitious targets

O’Rourke added: “With its iconic brands and leading distribution platform, I am delighted to join C&C and support the Board deliver its ambitious medium and long-term targets.”

The appointment of O’Rourke is part of the board’s ongoing programme of refreshment and renewal.

The process pre-dates recent engagement with Engine Capital and does not impact the recently announced agreement to appoint a new non-executive director to the board.

O’Rourke retired from professional services firm PwC in October 2023 where he had worked in a variety of roles over a 37-year career with the firm. He served as the PwC Managing Partner in Ireland for his last eight years.

In January 2024, he was appointed by Ireland’s Minister for Enterprise, Trade and Employment as Chair of IDA Ireland, the semi-state body that promotes foreign direct investment into Ireland. He is also chair of the Institute of International and European Affairs, the Irish based international think-tank.