Drinks maker C&C Group cuts profit view; shares tank (updated)
23/01/2026 09:12
Rewrites with details on share performance in paragraphs 1 and 2, details on profit forecast, sector background and company statements from 3 to 7 Jan 23 (Reuters) - Irish drinks producer C&C Group GCC.L on Friday cut its fiscal 2026 profit forecast, blaming weak confidence following November’s UK Budget that altered buying habits and saddled demand, sending shares down to a near 17-year low. C&C now expects adjusted operating profit of 70 million to 73 million euros ($82.17 million to $85.69 million) for the year ending February, compared to market expectations of 79.4 million euros according to a company compiled consensus. Tax hikes in finance minister Rachel Reeves’ autumn budget have tightened household budgets, leading Britons to rein in spending on even some essentials and shift away from higher‑cost categories like wine in favour of cheaper options. "Our business performance was driven primarily by softer than anticipated demand in hospitality, alongside adverse product mix, as consumers continue to move away from the consumption of wine and spirits, in favour of beer, across the market" C&C Group said in a statement. While Christmas trading met expectations, the owner of Tennent's lager and Bulmers cider said January demand remained soft and would likely persist through the end of its financial year in February. The company is exiting less profitable businesses and reducing volumes in its distribution channel, but warned the lag between revenue declines and cost cuts would keep fiscal 2027 profits at similar levels. The stock was down 8.4% and the worst performer on the FTSE midcap index .FTMC at 0902 GMT. ($1 = 0.8519 euros) (Reporting by Raechel Thankam Job in Bengaluru; Editing by Nivedita Bhattacharjee) ((RaechelThankam.Job@thomsonreuters.com;))