C&C Group Interim Financial Results

Dublin – C&C Group plc, a key player in the premium drinks market, announced its interim financial results for the six months ending August 31, 2024, today. The company, owner of leading brands like Tennent's and Bulmers, reported earnings in line with expectations and remains on track to meet full-year projections.

Despite challenging market conditions and a disappointing summer season, C&C experienced a marginal net revenue decline of 3%. This decline was primarily due to the sale of its non-core soft drinks business in Ireland and reduced volumes in contract brewing and cider sales in Great Britain. However, C&C saw a 2% increase in net revenue within its Matthew Clark & Bibendum distribution channels.

The Group's operating profit before exceptional items increased by 29%, rising by €9.1 million to €40.3 million compared to the same period last year. This improvement was attributed to ongoing efficiency initiatives, leading to an improved operating margin of 4.7%.

C&C's core brands, Tennent's and Bulmers, gained market share in the on-trade sector, reinforcing their leading positions. Additionally, premium brands like Menabrea and Orchard Pig delivered double-digit revenue growth. The Group's distribution service levels remained high, with customer numbers for Matthew Clark & Bibendum up by 10% year-on-year in August.

Looking forward, C&C is confident in achieving an operating profit of €80 million for fiscal year 2025 and has set a target of €100 million for fiscal year 2027. The interim dividend has been raised by 6% from the previous year, reflecting a commitment to a progressive dividend policy. C&C announced it has returned €38 million to shareholders as part of a plan to distribute at least €150 million over three years.

Recently, the Group appointed Feargal O'Rourke and Sanjay Nakra as Non-Executive Directors and is in the process of recruiting a new CEO.

This financial update is based on a press release from C&C Group plc, which continues to focus on enhancing service offerings and simplifying business operations as it approaches the critical holiday trading period.

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