C&C Group expects group revenues for the year to be in line with last year’s results, though its growth was offset by challenges in Ireland and the UK.
The UK and Ireland trading update for the drinks company in the 12 months to 28 February 2025 (FY2025) reflected growth in C&C’s distribution business, which was offset by the impact of the disposal of its non-core soft drinks business in Ireland.
It was also affected by the strategic exit of “low margin contract brewing volume” and softer cider sales in the UK due to poor weather during an important trading period.
Looking to the year ahead, C&C Group noted the macroeconomic environment in the UK, particularly in the hospitality sector.
With minimum wage rising in April and new social charges expected to increase product prices, the group is anticipating the pressure this will place on already stretched hospitality partners and strained consumer confidence.
Despite these challenges, the group has reported underlying earnings before interest and tax of €76 - €78 million.
This is below the Bulmers and Tennents-maker’s target due to softer trading in the drinks market across January and February, but it reflects a recovery compared to last year’s earnings of €60 million.
Growth
The company reported growing customer numbers, increasing by 7% in the second half of FY2025 and said it is investing in its brands to achieve market share value growth for its popular products.
It has also distributed €51 million, comprised of dividend payments of €21 million and share buybacks of €30 million.
C&C added that it intends to commence a further share buyback programme worth €15 million on 1 May, ahead of the publication of its full-year results on 28 May.
The results come following a number of changes for the company in 2024, including the surprise resignation of CEO Patrick McMahon in June, investor Engine Capital calling for the sale of the company the same month, new appointments to the board, and the announcement of a new CEO in December 2024.
‘Much Work To Be Done’
Speaking about the results, CEO Roger White said, “Having joined the business in late January 2025, although it is still early days, I believe I have already gained an understanding of the business and the wider market dynamics.
“It is clear to me that C&C has a committed and capable team, alongside great brands and a passion for delivering for its customers.
“However, there is much work to be done to fully realise the potential across the Group.
“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 focused on delivering increased shareholder value.”
Read More: C&C Group Announces Board Rearrangements For 2025
