C&C Group has reported earnings in line with full-year expectations, as it published results for the six months ended 31 August 2024.
The drinks company reported favourable results, despite poor summer weather and subdued market conditions in the first half of its financial year.
Results
The maker of brands such as Tennent’s and Bulmers reported an overall marginal net revenue decline of 3%, reflecting the disposal of its non-core soft-drink business, as well as lower contract brewing volumes and softer cider volumes in the UK.
Matthew Clark & Bibendum saw an encouraging growth in net revenue, of 2%, demonstrating customer and growth momentum in its distribution channel.
The underlying operating profit before exceptional items increased by 29% (€9.1 million), to €40.3 million, in the first half.
Operating margins also rose to 4.7%, thanks to initiatives designed to drive group-wide efficiencies, which are performing well.
C&C’s core brands, Bulmers and Tennent’s, gained market share in the period, as premium brands Menabrea and Orchard Pig achieved double-digit revenue growth, or 17% and 20%, respectively.
Future
In terms of outlook, the company stated that it was on track to achieve €80 million in operating profit for the 2025 financial year, with cost efficiencies in the first half further enhancing margins in the second half.
C&C has retained its target of €100 million in operating profit in the 2027 financial year, and it is carrying on its commitment to return a minimum of €150 million to shareholders over the next three years, in share buy-backs and dividends.
To date, it has returned €38 million to shareholders as part of the scheme.
Following the resignation of C&C’s chief executive, Patrick McMahon, in June and investor Engine Capital calling for the sale of the company, C&C has begun restabilising itself with new board appointments.
The drinks giant has appointed Feargal O’Rourke and Sanjay Nakra as non-executive directors to the board in recent months.
The chair of the board, Ralph Findlay, is currently serving as interim CEO, while the search for a permanent replacement for McMahon is under way.
‘Inherent Appeal And Resilience’
Speaking about the results, Findlay said, “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 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 & Bibendum, with customer numbers in August +10% versus the prior year.
“We continue to make improvements with regards to customer service, which underpins our customer acquisition strategy.
“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 improve operating efficiency.”
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