THE owner of Tennent’s Lager has issued a profit warning after trading conditions were “significantly impacted” by the reintroduction of coronavirus restrictions in the UK and Ireland in December, sending shares down nearly six per cent in early trading this morning.

C&C Group warned its profit outcome for the second half of its current financial year will be “affected by the nature, extent and duration of government restrictions”.

The company, which also makes Magners Irish cider, had said in October that it expected operating profit for the current year to be in the region of €50 million to €55m, “assuming current trading conditions prevailed”. Trading in the third quarter was “modestly ahead of expectation”, driven by “positive consumer sentiment and the return of customers to on-trade hospitality”, alongside moves to save costs.

However, it said trading in the on-trade was “significantly impacted” in December after the emergence of the Omicron variant led to the reintroduction of restrictions.

In Scotland, Public Health Scotland and the Scottish Government advised people in December to not attend Christmas parties amid concern about the variant, which led to a huge fall in festive bookings in the hospitality trade. This was followed by the introduction of new restrictions on December 27, which saw nightclubs close for a three-week period and the reintroduction of one-metre physical distancing in hospitality and leisure settings; table service is also required where alcohol is served to be consumed on the premises.

C&C said in a statement to the stock market this morning: “In the month of December, the key festive trading period, C&C traded directly with 81% of on-trade outlets vs FY2020, delivering 64% of the volume against an expectation of 90% and 90% respectively. While December’s performance was consequently behind expectation, the Group generated a modest profit for the month.

"The operating profit outcome for the H2 FY2022 period will be affected by the nature, extent and duration of government restrictions.

"Consequently, C&C will provide an updated operating profit range in its FY2022 pre close trading statement in March.”

Shares in C&C were trading at 223p at 10.40am, down 5.8%.