20th Mar 2020 13:05
(Alliance News) - Magners cider producer C&C Group PLC on Friday said the Covid-19 spread will have a "material impact" on its trading during the current financial year.
C&C explained: "Given the ongoing uncertainty, we are unable to accurately quantify the expected impact of Covid-19 on our financial and trading performance at this stage. However we expect a material reduction to our prior expectations for financial 2021."
The company said it has drawn down its full revolving credit facility and is "working to ensure further credit is available should it be required".
It has "significantly reduced" capital expenditure, as well as marketing spend.
C&C added: "Like others in the sector, we welcome the support from governments and we are actively engaging with the Irish and UK Tax Authorities with a view to addressing tax and duty liabilities that arise during this downturn in trading."
The company explained it is "well-positioned to withstand a material decrease in business activity during 2020".
C&C shares 7.3% lower at 147.60 pence each in London on Friday afternoon.
By Eric Cunha; [email protected]
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