C&C Group reports robust results amid market challenges

By James Bayley

Published: 29 October, 2024

C&C Group has released its interim results for the six months ending 31 August 2024, highlighting mixed performance amid a challenging market landscape. Despite external pressures, the group has reported earnings that align with expectations and remains committed to its operational targets for the full financial year.

The company saw a 3% decline in overall net revenue, attributed mainly to the divestment of its non-core soft drinks business in Ireland and reduced contract brewing volumes, as well as weaker cider sales in Great Britain. In contrast, C&C’s distribution arm, led by Matthew Clark and Bibendum, achieved a 2% revenue increase, reflecting customer gains and recovery momentum within the hospitality sector.

The group’s underlying operating profit before exceptional items rose 29% to €40.3m, supported by efficiency initiatives that boosted operating margins to 4.7%. C&C’s well-known brands, Tennent’s and Bulmers, continued to strengthen their market positions, while the premium brands Menabrea and Orchard Pig recorded double-digit growth at 17% and 20%, respectively.

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Ralph Findlay, C&C’s chief executive, expressed optimism about the results, stating: “Despite unfavourable summer weather, our brands demonstrated inherent appeal and resilience with both Tennent’s and Bulmers growing market share.” Findlay added that August customer numbers in Matthew Clark and Bibendum were up 10% compared to the previous year.

Looking ahead, C&C expects to achieve €80m in operating profit for FY2025, with further efficiency measures anticipated to enhance margins in the latter half of the year. The group’s previously stated goal of returning €150m to shareholders over three years remains unchanged, with share buybacks and dividends already reaching €38m. However, C&C acknowledged the impact of adverse summer weather on beer and cider consumption across its markets and has earmarked January 2025 for regaining control of its cider portfolio in Great Britain as part of a larger strategic reorganisation.

Meanwhile, the group is continuing its search for a new CEO and has announced interim dividend growth of 6%, reflecting its commitment to shareholder returns amidst a difficult trading environment.

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