Drinks company C&C Group plc has reported a strong financial performance for the 12 months ended 28 February 2025, with earnings growth and improved operating margins, despite challenges in the broader market.
In a trading update released on Thursday, C&C said it expects to report underlying earnings before interest and taxes (EBIT) in the range of €76-€78 million, representing a notable recovery from the previous year’s €60m (£50.4m).
While this result falls slightly short of the company’s targets due to softer trading conditions in January and February, the company said it reflects its resilience amid economic uncertainty.
Group revenues are expected to remain stable compared to last year, supported by growth in C&C’s distribution business. This was offset by the strategic disposal of its non-core soft drinks business in Ireland, the planned exit from low-margin contract brewing, and weaker cider sales in Britain during the summer months.
C&C saif the macroeconomic environment, including the UK October Budget, presented challenges for its hospitality customers, impacting consumer confidence. However, the company successfully expanded its customer base, with a 7 per cent increase in the second half of the year in its Matthew Clark Bibendum distribution business.
This growth was attributed to consistently high service levels and continued investment in the company’s leading brands, including Tennent’s and Bulmers.
Looking ahead, C&C anticipates ongoing economic uncertainty and challenges in the hospitality sector. However, the company remains optimistic about its long-term prospects, with plans to reinvest in brand innovation, customer service, and operational systems. Notably, the relaunch of Magners, now under C&C’s full management control in the UK, is among the key initiatives planned for FY2026.
Despite market challenges, the company expects earnings in FY2026 to be slightly ahead of FY2025, with a medium-term goal of achieving €100 million in EBIT.
Roger White, who joined C&C as chief executive in January 2025, acknowledged the company’s strengths while emphasising the need for further improvement.
“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,” he commented.
“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. I remain confident of the significant long-term opportunity within the business and I am fully focussed on delivering increased shareholder value.”
C&C will provide further details in its full-year results announcement on 28 May.
