Despite the turbulence in the boardroom and consumer-facing challenges, beverages company C & C remains upbeat about its potential for robust earnings growth this year. In its latest compliation of trading data prior to its annual general meeting on Thursday, the firm, which owns Bulmers, announced the induction of IDA Ireland chairman Feargal O’Rourke to its board as a non-executive director. A former leader at PwC Ireland, O’Rourke will be joining the board as an external appointee while also participating in the audit committee.
Since June, C & C’s corporate governance has attracted scrutiny after its CEO, Patrick McMahon, resigned suddenly after just a year in post. This lead to a revision of the firm’s earnings from the past three years, resulting in a fundamental charge of €5 million. Following a dip in share value that made the Tennants lager producer a prospective acquisition target, an agreement was reached in August with activist investor Engine Capital to designate a new non-executive director.
C & C asserted on Thursday that O’Rourke’s board induction is part of a persistent scheme for rejuvenation and innovation. The company clarified that his appointment predates the recent interaction with Engine Capital and doesn’t affect the newly announced plan to assign a new non-executive director to the board.
Interim CEO, Ralph Findlay, who originally held the chairman’s position, expressed his optimism about O’Rourke’s “valuable experience” contributing to the company’s future goals in the strategic, financial and ESG (environmental, social, governance) sectors.
Reinforcing its commitment to its stakeholders, C&C also pledged to yield €150 million in the next three years via buy-backs and dividends. Moreover, the firm is expected to generate an operational profit of around €60 million in 2024.
C & C stated ahead of its AGM on Thursday that its earnings for the current fiscal year have met the target despite the adverse weather in June, which has been widely reported.
The beverage corporation confirmed that it will continue with its intention to initiate a subsequent share repurchase programme in the ensuing weeks. This follows the distribution of €15 million to shareholders since the start of March. These disbursements are part of the corporation’s design to distribute €150 million to its shareholders over the forthcoming three years, inclusive of its present financial year, ending in February 2025. The 9th of September will witness C&C providing additional particulars about its performance this year during its half-year trading update.