C&C Group has reported that earnings for the first half of FY2025 to 31 August have been in line with expectations.
Net revenues for the drinks giant are expected to be -3% reflecting growth in Matthew Clark & Bibbendum and in-line performance with core and premium brands.
The group's disposal of the NAB business in Ireland offset these revenues, along with lower contract brewing volumes and softer cider volumes in the UK.
C&C expects underlying operating profit in the range of €39 million to €41 million, in line with expectations.
This will reflect the phased rebuilding of the company’s distribution business profitability following last year’s enterprise resource planning disruption.
Brands
C&C’s Tennents brand achieved volume and value share growth in the latest 12 week period, supported by targeted marking campaigns around the Euros 2024 tournament.
Bulmers similarly outperformed the cider market in Ireland despite mixed summer weather.
C&C’s premium beer and cider brands – driven by Menabrea and Orchard Pig – continued to perform strongly, reporting double digit revenue growth.
Matthew Clark and Bibendum brands also performed well, with net revenues expected to reach +2%.
Recovery from lost distribution customers in FY2024 has gone well, with distribution points for Matthew Clark and Bibendum up by 10% in August 2024 compared to the same period last year.
This growth, along with the company’s new efficiency initiatives implemented this year, means that C&C expects improved distribution margins in the first half of 2025.
Outlook
While current market conditions remain challenging, C&C Group has reiterated its priorities as improving efficiencies, simplifying businesses, winning customers and improving brand distribution.
The drinks company remains confident that it will achieve its target operating profit for the financial year, moving towards its goal of an operating profit of €100 million by FY2027.
The Board has reaffirmed its intention to distribute at least €150 million to shareholders over three years, with the second €15 million tranche of the share buyback programme starting today, 9 September.
Since the annual general meeting (AGM) on 15 August 2024, the board has welcomed Feargal O’Rourke into the fold as a non-executive director.
Following a tumultuous few months – including the resignation of Patrick McMahon as CEO in June after just a year in the role – the board announced that it has commenced the recruitment process for a new CEO.
Read More: C&C Group Announces New Non-Executive’s Purchase Of Shares
