DAVY VIEW

Twenty months on from the Matthew Clark Bibendum (MCB) acquisition, C&C’s ambitions for its integrated platform continue to develop. MCB has quickly re-emerged as a highly relevant scale player in the UK drinks market. Through CY19, C&C’s equity responded to the enhancement of its vertically integrated strategy across all markets and associated operational and financial delivery. While the unexpected departure of Group CEO Stephen Glancey has caused price weakness, he leaves the business against a backdrop of positive operating momentum with a platform that has enhanced potential. We see scope for model evolution and enhanced relevancy, which can deliver sustainable earnings growth. In this report, we examine the available long-term growth levers that are not captured in our forecast model.