C&C Group reports steady results amidst challenging market conditions
C&C Group plc (‘C&C’ or the ‘Group’) has announced results for the six months ended 31 August 2024 (‘HY2025’).
The Group’s portfolio includes brands such as Tennent’s and Bulmers, as well as a growing collection of curated premium craft beers and ciders, together with Matthew Clark and Bibendum (‘MCB’), the leading distributor to the UK hospitality sector.
C&C has reported that the results are in line with expectations despite poor summer weather and subdued market conditions in HY2025.
The company reported an overall marginal net revenue decline of 3%, attributed to the sale of its non-core soft drinks business in Ireland, as well as lower contract brewing and softer cider volumes in Great Britain.
However, net revenue in MCB grew by 2%, showing signs of customer recovery and strong momentum in the distribution channel.
Underlying Group operating profit before exceptional items rose by 29%, or €9.1 million, reaching €40.3 million in the first half of 2025.
Operating margins improved to 4.7% due to ongoing initiatives focused on enhancing efficiency across the group.
Operating highlights
Core brands Tennent’s and Bulmers increased their on-trade market share, further solidifying their market-leading positions.
Premium brands saw robust growth, with Menabrea achieving a 17% increase in revenue and Orchard Pig up by 20%.
MCB experienced a 10% year-on-year increase in customer numbers in August, with high levels of customer retention.
Distribution service levels remained consistently high, achieving more than 97% on-time deliveries and more than 95% delivered in full. The transition to a new state-of-the-art depot at Orbital West in London has supported ongoing improvements in service levels.
Outlook & capital returns
The company is on track to achieve an operating profit of €80 million for FY2025, with cost efficiencies in the first half expected to boost margins in the second half. The target of €100 million operating profit remains set for FY2027.
To date, share buybacks and dividends total €38 million, contributing to the goal of returning a minimum of €150 million to shareholders within the next three years.
Feargal O’Rourke and Sanjay Nakra were appointed as non-executive directors in August and September 2024, respectively.
The recruitment process for a new chief executive officer is currently in progress.
Ralph Findlay, chief executive officer, C&C Group, said: “Despite unfavourable summer weather, our brands demonstrated inherent appeal and resilience with both Tennent’s and Bulmers growing market share and Menabrea and Orchard Pig achieving double digit revenue growth.
“I am also encouraged that we achieved significant growth in distribution in Matthew Clark and Bibendum with customer numbers in August +10% vs the prior year. We continue to make improvements with regards to customer service, which underpins our customer acquisition strategy.”