Drinks giant C&C Group has reiterated its objective to deliver operating profit of €100 million over the medium term in its latest trading update.
The Bulmers and Tennent's maker noted that group revenue for its financial year ended 28 February is expected to be in line with the previous year.
The company's added that its performance reflects growth in its distribution business.
However, this was offset by the disposal of the non-core soft drinks business in Ireland, the strategic exit of low-margin contract brewing volume, and softer cider sales in Great Britain during the summer trading period.
The macroeconomic environment and the UK October Budget have placed additional pressure on its hospitality customers and impacted consumer confidence more generally, C&C Group noted.
Annual Highlights
The drinks group hopes to report annual underlying EBIT in the range of €76 million to €78 million, slightly below its target range due to softer trading across the market in January and February.
The company added that its performance reflects a significant recovery compared to the prior year’s earnings of €60 million.
Operating margins are projected to be ahead of FY 2024 with positive performance in both its branded and distribution businesses.
The group has seen a 7% increase in customer numbers in its Matthew Clark & Bibendum distribution business in the second half of its financial year.
It has achieved market share value growth for Tennent’s in both the on- and off-trade segments and for on-trade Bulmers in the Republic Of Ireland.
Share Buyback
The company distributed €51 million during the year, including dividend payments of €21 million and share buybacks of €30 million.
It plans to commence a share buyback programme worth €15 million on 1 May 2025.
Roger White, chief executive officer of C&C group, commented, “Whilst the market backdrop remains challenging, we are continuing to support our customers, invest in the business, and have some exciting plans to implement this year which I look forward to updating you on further in May.
“I remain confident of the significant long-term opportunity within the business and I am fully focussed on delivering increased shareholder value.”
C&C Group will publish its full-year results on 28 May 2025.
