C&C reports marginal fall in revenue but 29% lift in operating profit

29-Oct-2024 - Last updated on 29-Oct-2024 at 15:04 GMT

C&C Group results: chair and CEO Ralph Findlay of the business that counts Tennent's as one of its brands

Drinks distributor and manufacturer C&C Group has announced its net revenue has declined by 3% but underlying operating profit has risen by 29% in the six months (H1 FY25) to 31 August 2024.

The group, which includes the Tennent’s and Bulmers brands, plus the combined Matthew Clark & Bibendum businesses, said its results are in line with expectations despite poor summer weather and subdued market conditions in H1 FY25.

Although, overall net revenue declined by 3% from €886.9m in H1 FY24 to €861.4m, it reflected the disposal of C&C’s non-core soft drinks business in Ireland, lower contract brewing volumes and softer cider volumes in GB.

There was “encouraging” net revenue growth of 2% in Matthew Clark & Bibendum “demonstrating customer recovery and growth momentum in our distribution channel”.

Double-digit revenue hike

The 29% boost in underlying group operating profit before exceptional items saw that figure up by €9.1m to €40.3m in H1 FY25.

It reported core brands Tennent’s and Bulmers gained on-trade market share while revenue grew with Menabrea up 17% and Orchard Pig up 20%.

C&C, based in Ireland, added it is on track to achieve €80m operating profit for FY25 with cost efficiencies in H1 to further enhance margins in H2. While it has retained its target of achieving €100m operating profit in FY27.

The group also appointed two key figures in Feargal O’Rourke (15 August 2024) and Sanjay Nakra (19 September 2024) as non-executive directors while the recruitment process for a new CEO is under way.

Inherent appeal

C&C Group chair and CEO Ralph Findlay said: “I am pleased to report earnings in line with expectations in FY25 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 we achieved significant growth in distribution in Matthew Clark and Bibendum with customer numbers in August up 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.”