DAVY VIEW

C&C’s interim results are in line with the September 11th pre-announcement, with the key positive a better-than-expected sequential rebuild in Distribution margins. Guidance is unchanged, and the business remains on track to meet full-year market expectations (Davy EBIT: €70.5m), implying a modest year-on-year (yoy) EBIT decline in H2. We expect to leave our FY EBIT forecast unchanged. With the foundations reset and performance beginning to improve, we see decent upside to the equity.