Drinks giant C&C Group plc has reported results ‘in line with expectations’, despite poor summer weather and subdued market conditions in the first half of its financial year, ended 31 August 2024.
The maker of Bulmers and Tennent’s reported a 29% year-on-year increase in underlying group operating profit before exceptional items, to €40.3 million.
Operating margin increased to 4.7%, the company noted
Overall marginal net revenue declined by 3% in this period, following the disposal of its non-core soft-drink business in Ireland, lower contract brewing volumes, and softer cider volumes in Great Britain.
Ralph Findlay, chair and chief executive officer, commented, “I am pleased to report earnings in line with expectations in HY2025, as we rebuild performance and momentum within the business.
“Despite unfavourable summer weather, our brands demonstrated inherent appeal and resilience, with Tennent’s and Bulmers growing market share and Menabrea and Orchard Pig achieving double-digit revenue growth.”
Matthew Clark & Bibendum saw revenue growth of 2%, reflecting customer recovery and growth in the company’s distribution channel.
Outlook
C&C Group remains ‘on track’ to achieve an €80 million operating profit for full-year 2025, with cost efficiencies in the first half to further enhance margins in the second half.
The company upheld its target of achieving €100 million in operating profit in its 2027 financial year.
‘This would imply a further €10 million year-on-year increase in the second half, including the continuation of the recovery in lost free-trade customers at MCB (customer numbers +10% at the year-end) and further efficiencies. Given the typical first half weighting, we estimate that delivery of full year profit estimates would account for half the approximately €10-million profit growth forecast for next year,’ Shore Capital claimed in an analyst note.
It announced an interim dividend of 2.00c – up by 6%, compared to the previous year.
Findlay added, “As we enter the busy Christmas and New Year trading period, we are committed to delivering outstanding service, winning customers, continuing to simplify the business, and to further improving operating efficiency.”
