REG - C&C Group Plc - Final Results
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RNS Number : 2986K C&C Group Plc 28 May 2025
FINAL RESULTS FOR THE 12 MONTHS ENDED 28 FEBRUARY 2025
SOLID EARNINGS AND MARGIN PROGRESSION, ALONGSIDE CONTINUED STRONG CASH
GENERATION
28 May 2025 | C&C Group plc ('C&C' or the 'Group'), the premium
drinks company which manufactures, markets, and distributes branded beer,
cider, wine, spirits and soft drinks across the UK and Ireland, announces
final results for the 12 months ended 28 February 2025 ('FY2025'). The
Group's portfolio includes market-leading brands such as Tennent's, the #1
beer brand in Scotland, Bulmers the #1 cider brand in Ireland, as well as
a growing collection of premium beers and ciders, together with Matthew Clark
Bibendum, the leading premium drinks and wine distributor to
the UK hospitality sector.
FINANCIAL SUMMARY
· Resilient performance across the Group.
· Net revenue of €1,665.5m, in line with FY2024.
· Revenue growth in Matthew Clark Bibendum, and in-line performance
across Branded.
· Adjusted EBITDA((iv)) up 19.5% to €112.0m and Operating
Profit((i)) growth of 28.5% to €77.1m.
· Improved operating margins in Branded and Distribution segments.
· Strong free cashflow((v)) generation; Leverage ratio((vi)) in
FY2025 of 0.9x.
€m FY2025 FY2024 vs FY2024
Net Revenue 1,665.5 1,652.5 +13.0
Adjusted EBITDA((iv)) 112.0 93.7 +18.3
Operating Profit before Exceptional Items 77.1 60.0 +17.1
Operating Margin((i)) 4.6% 3.6% +1.0 ppts
Adj. Profit Before Tax((i)) 55.9 38.8 +17.1
Adj. Basic Earnings per Share((i)) 11.7c 8.1c +3.6c
Basic Earnings/(loss) per Share 3.5c (29.0)c +32.5c
Free Cash Flow((v)) (excluding exceptionals) 68.8 85.6 -16.8
Net Debt (excluding leases) 80.9 57.9 +23.0
Leverage ratio((vi)) 0.9x 0.8x +0.1x
OPERATING HIGHLIGHTS
· Tennent's and Bulmers achieved market share gains, maintaining
market-leading positions.
· Magners relaunch underway with initial Off-Trade gains.
· Recovering customer momentum - Matthew Clark Bibendum customer
numbers up 8%.
· Strong recovery in Distribution service levels with 98% "On Time"
and 96% "In Full".
· Investment in control improvements and commencement of
simplification programme.
Notes (i) through (vi) referenced above and throughout the Final Results for
the 12 Months Ended 28 February 2025 can be found on the conclusion of the
Chief Financial & Transformation Officer's Review
OUTLOOK & CAPITAL RETURNS
· Current trading encouraging and no change to expected outturn for
the financial year.
· Limited tariff impact on trading and costs.
· Proposed final dividend of 4.13c (FY2024: 3.97c) up 4% on FY2024.
· €150m capital return programme maintained; €15m tranche share
buyback programme commenced on 1 May 2025.
Roger White, Group Chief Executive Officer, commented:
"The Group has progressed on a number of fronts over the last year, despite
the ongoing challenging macro and market backdrop. Our two leading brands,
Tennent's and Bulmers gained market share and we see future growth
opportunities for both. Our Premium brand performance is encouraging,
benefitting from ongoing consumer appeal for premium beer and cider which is
driving growth in this segment.
"Within Distribution, Matthew Clark Bibendum continued to deliver positive
momentum, achieving consistently improved service levels, growing its customer
base by 8%, providing great range and value.
"Looking ahead, year to date trading is encouraging. With the key summer
trading period ahead, we are executing our plans for the year, supporting our
customers, investing in innovation and brand-building, people, and systems,
whilst continuing to simplify the business and control costs. We remain
focussed on building a solid platform from which we can maximise the potential
of the group. We are developing plans to grow sustainably whilst delivering on
our financial targets, creating increased long-term shareholder value."
Topic: C&C Group Full Year Results Announcement
Time: May 28, 2025 09:00 London
Attendee Registration link:
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Contacts:
C&C Group plc
Email: investor.relations@candcgroup.ie
(mailto:investor.relations@candcgroup.ie)
Investors, Analysts & UK Media:
Instinctif Partners
Justine Warren / Tim Pearson
Tel: 020 7457 2020
Email: candccapmkts@instinctif.com
Irish Media
FTI Consulting
Jonathan Neilan / Paddy Berkery / Niamh O'Brien
Tel: +353 86 231 4135 / +353 86 602 5988 / +353 87 707 8379
Email: CandCGroup@fticonsulting.com (mailto:CandCGroup@fticonsulting.com)
CHAIR'S STATEMENT
I am pleased to report solid progress across the Group in the 12 months ended
28 February 2025. We commenced a journey to recover profitability, based on
providing consistently high levels of customer service and achieving ongoing
growth in customer numbers and continued strong market performance in our
Branded business. In addition, improvements in supply chain efficiencies
across our production, distribution and warehousing operations, contributed to
the increase in underlying profitability.
Group Revenues were in line with last year, reflecting growth in Distribution
offset, as previously indicated, by the disposal of our non-core soft drinks
business in Ireland, lower contract volumes and a softer cider market in the
UK and Ireland due to poor weather over the 2024 summer months.
Operating profit((i)) was €77.1m (FY2024: €60.0m), representing a
significant recovery in year-on-year earnings. Operating margins((i)) of 4.6%
were up 1%, with margin growth in both the Branded and Distribution segments,
as outlined in more detail in this report. Profit before tax((i)) was €55.9m
(FY2024: €38.8m) and on a statutory basis, profit before tax was €19.6m
(FY2024: €111.6m loss).
The business is strongly cash generative, with underlying free cashflow((v))
(before exceptional items and one-off working capital items) of €68.8m
(2024: €85.6m). Net debt((iii)) (excluding leases) at the end of the period
was €80.9m (FY2024: €57.9m) and our leverage ratio((vi)) was 0.9x (FY2024:
0.8x), consistent with our medium-term leverage target. As outlined in the
financial review section, the Group has bank facilities extending to 2030 and
therefore currently has no short-term refinancing requirements.
Dividend and Shareholder Returns
In recognition of the Group's continuing strong cash generation, the Board has
reconfirmed its intention to distribute €150.0m to Shareholders through a
combination of dividends and share buybacks, over the three fiscal years
FY2025 to FY2027. In FY2025, €52.9m has been returned to Shareholders,
including the FY2024 dividend and FY2025 interim dividend. As previously
announced, a further €15m tranche of the Group's share buyback programme
commenced on 1 May 2025.
The Board has proposed, subject to Shareholder approval at the AGM, a final
dividend of 4.13 cent per Ordinary Share. The proposed final dividend is to be
paid on 18 July 2025 to Shareholders registered at the close of business on 13
June 2025. In addition to the interim dividend of 2.0 cent per share, paid to
Shareholders on 1 December 2024, this represents a full year dividend of 6.13
cent per share to Shareholders.
Economic Environment
The macro-economic and legislative headwinds facing the retail and hospitality
sector are well documented. Consumer confidence in the UK and Ireland remains
subdued and the recently announced US tariffs add further uncertainty. Total
employment costs in the UK will grow in the coming year due to the increase in
the National Minimum Wage and employer National Insurance contributions
announced by the UK Government in its October 2024 Budget. The introduction of
further legislative activity, such as the Extended Producer Responsibility
("EPR") Levy and the already introduced Deposit Return Scheme ("DRS") in the
Republic of Ireland, will cause further price inflation, as these costs and
taxes are passed on to customers and consumers. Against this backdrop, the
focus on prudent management of our cost base, alongside ongoing plans to
simplify the business and improve operating efficiency, combined with
continued strong customer service, remain our operating priorities.
Board, People and Governance
The Group was pleased to announce the appointment of Roger White as Chief
Executive Officer (CEO) in December 2024. Having joined us in January 2025,
Roger brings significant brand, sales, and operating experience, which is
highly relevant to the challenges and opportunities facing C&C going
forward. Together with Andrew Andrea's appointment as Chief Financial &
Transformation Officer, the Group now has experienced executive leadership in
place, as well as a refreshed senior management team including new external
appointments in IT, marketing, sales, and risk management. The roles of CEO
and Chair were split on 1 March 2025, at which time I reverted to
Non-Executive Chair.
In addition, Feargal O'Rourke and Sanjay Nakra were appointed as Non-Executive
Directors during the course of the year, bringing in-depth financial and
capital markets experience to the Board. Feargal replaced John Gibney as Chair
of the Audit Committee. John and Vincent Crowley stepped down from the Board
during the year and I would like to thank them both for their significant
contributions.
During the year we have made good progress on further improvement in our
governance, systems, and control environment with further detailed actions in
place for the coming financial year.
I would like to thank the entire C&C team for their dedication, hard work
and resilience.
Outlook
C&C's portfolio of much-loved brands, combined with our industry-leading
customer focused distribution business and strong cash flow provides us with
confidence in our future prospects. Notwithstanding the immediate challenges
facing the consumer and our customers, we believe there is significant scope
for us to further improve the financial and operating performance of our
business.
Over the year ahead, we plan to further invest in our people, customer
proposition, brand innovation and systems, underpinning the Board's confidence
in our ability to achieve sustainable, long-term profitable growth.
Ralph Findlay
Chair
CHIEF EXECUTIVE OFFICER'S REVIEW
MARKET DYNAMICS
UK
The macroeconomic environment and October 2024 UK Budget have placed a degree
of additional pressure on the hospitality sector and impacted consumer
confidence more generally. Despite these challenges, the number of licensed
On-Trade premises is broadly stable year-on-year, with 99,120 outlets trading
in 2024 versus 99,113 in 2023. 1 (#_ftn1) . Drink-led venues have proved more
resilient, growing 0.5% in the last 12 months whereas food-led outlets fell
0.7%1 .
In the UK Off-Trade channel, competitive pricing strategies became more
prevalent across the market in the latter half of 2024 to improve weak sales
performance from earlier in the year. The increase in minimum unit pricing in
Scotland had a modest impact on volumes in the latter part of the reporting
period, and we will continue to assess the ongoing impact of this changed
legislation in the Scottish market.
In the UK On-Trade, the shift in mix towards beer and cider continued, as
consumers increased spending on both categories. Consequently, beer has again
grown its value share in the On-Trade, rising by 1.3% on an MAT basis and now
representing 44.2% of total category value share2. Within the beer category,
the shift towards premium brands has continued. Stout has been the standout
performer, with sales value increasing 25% 2 (#_ftn2) vs the prior year.
Offsetting this, wine value share has declined by 0.4%, largely reflecting
reduced demand through its two largest channels; hotels and restaurants.
Spirits value share has declined by 0.9% in the year.2
Ireland
In Ireland, On-Trade Long Alcoholic Drink (LAD) volumes were in line with last
year, with value growth of 9% 3 (#_ftn3) reflecting pricing activity in the
period and with growth in all categories. The market saw a shift towards
stout, premium beer and ready to drink categories, with standard lager and
cider seeing share declines. Positively, tourism provided a welcome tailwind
to the industry with international visitor spend estimated to have increased
13% 4 (#_ftn4) in the year.
In the Irish Off-Trade, LAD volumes were down 5% and value down 2% 5 (#_ftn5)
. Cider category volume and value declined by 6% and 3% in the period5. The
large supermarket operators have responded with increased targeted advertising
campaigns and deep discounting promotions as actions to stimulate category
volume.
STRATEGY AND OUTLOOK
Our primary objective is to develop a business model that can deliver
sustainable value and growth into the longer term. This will be achieved
through developing and investing in our customer value proposition alongside
further brand-building and innovation. This will require investment in, and
development of, systems and technology and will be enabled by our motivated
and experienced teams across the business.
Our strategy is focused on building on three key areas:
· Brand Strength - we have two market leading brands; Bulmers in
Ireland and Tennent's in Scotland and our objective is to continue to build on
these market leading positions, whilst simultaneously expanding through the
growth of Magners in the UK and our premium brand portfolio, most notably
Menabrea and Heverlee.
· Portfolio and Service - our objective is to be the leading drinks
distributor in the UK and Ireland in terms of service, quality and value.
· Simplification and Efficiency - it is our belief that simplicity and
efficiency will underpin growth in volume and value in our business model.
BRANDS
Our Branded business net revenue decreased 5% in the period, to €298.6m.
This reflects a stable performance from our core brands and growth in our
premium brand portfolio, offset by decline in the cider portfolio across GB.
Operating profit (pre exceptionals) of €46.1m, increased 3% year on year and
operating margin improved by 110bps to 15.4%.
€m FY2025 FY2024 vs FY2024
Net revenue 298.6 312.7 (5)%
Operating profit((i)) 46.1 44.6 +3%
Operating Margin((i)) 15.4% 14.3% 1.1% pts
Tennent's outperformed total beer market performance in the On-Trade channel,
increasing market value share by 0.9% on an MAT basis 6 (#_ftn6) . Tennent's
total brand net revenues were down 2% in the period, with pricing partly
offsetting a volume decline of 6% reflecting the impact of poorer weather over
the summer and the temporary impact of the Euro 2024 football tournament where
an estimated 200,000 Scotland fans travelled to Germany over the period. Brand
investment in the year centred on Tennent's sponsorship of Scottish football
as well as the continuation of the brand's successful 'OOFT' campaign.
Magners' volumes were down 5% in the period, with the poor weather in the
summer months influencing cider consumption, particularly in the Off-Trade
channel where total cider volumes are down 8% on an MAT basis 7 (#_ftn7) .
We continued to make good progress in growing our premium brands portfolio.
Development of these brands remains a strategic focus for the business, with
distribution drives continuing across our trading territories. Accordingly, we
plan to increase investment in these brands as we seek to capitalise on growth
in the premium segment of the market.
In Ireland, Bulmers' net revenues in the period were down 2%. As in GB, the
summer weather in Ireland was poor which impacted total cider market volumes,
with both On and Off-Trade volumes in decline at 4% and 6% respectively 8
(#_ftn8) . In value terms we gained market share in the On-Trade (+0.3ppts)
cider market with a small share loss in the Off-Trade.
From 1 January 2025, we took back direct control of the distribution of
Magners and our wider cider portfolio. This was part of a wider reorganisation
of our trading relationship with Budweiser Brewing Group ('BBG'). This
provides us with the opportunity to strengthen the Magners brand as we plan to
increase our marketing investment, commencing with our new 'Magnertism' summer
campaign launched in May 2025.
DISTRIBUTION
Performance in the Distribution segment has been encouraging in FY2025, with
recovery in GB following the FY2024 ERP disruption reflecting a focus on
rebuilding customer trust, primarily through restoration of high levels of
customer service. Volume performance reflected the category mix changes
experienced across the market towards LAD, and away from wines and spirits.
Operating profit recovered to €31.0m and operating margins improved 120bps
to 2.3% in the period.
€m FY2025 FY2024 vs FY2024
Net revenue 1,366.9 1,339.8 2%
Operating profit((i)) 31.0 15.4 +101%
Operating Margin((i)) 2.3% 1.1% 1.2% pts
Net revenue in the distribution business in GB was up +3.5%. Matthew Clark
Bibendum customer numbers were up 8% in the period, with improved customer
retention, and expansion of existing key customer outlets contributing to this
positive performance. Encouragingly, our business outperformed the market with
volume share up 1.3ppts on an MAT basis. 9 (#_ftn9)
Net revenue in the Distribution business in Ireland ('IOI') was down 4.3%,
with volumes down 12%. This was driven primarily by the performance of BBG
brands in our portfolio. As already highlighted, following the trading
relationship review with BBG, we have transferred control and distribution of
BBG's brands in the IOI Off-Trade back to BBG, alongside taking back control
of our GB cider portfolio. Performance in our wines and spirits wholesale
business in Ireland has seen good revenue and volume growth in the period.
Following the significant ERP disruption suffered in FY2024, we quickly
restored service levels to pre-ERP levels. Our primary measures of service are
defined as "On Time" and separately, "In Full". On Time and In Full averaged
98% and 96% throughout the year, ahead of industry average levels. We have
also introduced a comprehensive dashboard of service metrics including
monitoring of complaints, speed of call answering, courier usage and
forecasting accuracy, all of which have demonstrated improvement during the
year.
SIMPLIFICATION AND EFFICIENCY
In support of our core objective of delivering choice and value to our
customers, it is critical that we are focused on operating the business in the
most efficient manner. We undertook a detailed review of our operational
network, internal systems and ways of working in the period.
Operationally we have rationalised our network to 25 distribution sites across
the UK and Ireland. During the period we have closed, or are in the process of
closing, 5 depots in the network, with routes allocated to more efficient,
larger hubs, most notably the Group's Orbital West distribution facility in
London. These actions have supported the significant improvement in our
service levels to customers and provide a scalable platform for growth.
We have also enhanced our CRM platform for our wholesale business, supporting
the efficient targeting of new customers and facilitating stronger growth with
existing customers. In addition, we are in the process of developing a new
digital sales platform which will provide flexibility to our customers in how
they trade with us.
From a governance perspective, our complex legacy corporate structure has
introduced unnecessary cost and complexity for the business. Our plan is to
reduce the number of legal entities within the Group to around 30 entities by
the end of FY2026. This will enable us to harmonise policies and controls
across the business. In addition, following the FY2024 audit process, and
supporting our drive to simplify and improve controls, we have increased
resources in our controls environment to implement significant improvements,
with several ongoing improvement programmes across the organisation.
SUSTAINABLITY
Our Environmental, Social and Governance (ESG) approach is a key element of
our overall business strategy. Our aim is to support "Delivering to a better
world" through our actions and approach. We have underpinned this with
appropriate policies, good governance, strong stewardship, alongside further
development of our risk management processes in the last 12 months.
The Group continues to invest in initiatives to reduce our Scope 1 and 2
emissions. In FY2025, our efforts to achieve our science-based target,
resulted in C&C reducing our Scope 1 and 2 (location based) emissions by
16% (vs FY2024), and 36% (vs FY2020 baseline).
We acknowledge the positive role our industry plays in society and our
position within it as a producer and distributor of alcoholic beverages. We
are 100% committed to the responsible marketing of alcohol and promoting the
moderate consumption of the products we manufacture and distribute to ensure
they are enjoyed safely by consumers. We continue to work with leading
agencies, Drinkaware UK and Portman Group in the UK and Drinkaware.ie and Copy
Clear in Ireland to ensure that we educate consumers and strive to market our
products to the highest possible standards. In FY2025, all C&C Marketing,
Communications, Legal and Company Secretarial colleagues again undertook
mandatory Advertising Standards, Portman Group and CopyClear training on
responsible alcohol marketing.
In FY2025, C&C retained its "AA" rating from leading ESG Ratings Agency;
MSCI, again placing us in the top c. 30% in the beverage sector.
LOOKING FORWARD
Growth opportunity for our two lead brands
We see opportunity to further grow the value generated from Tennent's and
Bulmers, the two lead brands within our portfolio. These long-standing
heritage brands benefit from iconic status and enormous loyalty with consumers
and customers alike and, as such, have an important future role to play within
C&C's business. We believe both brands have significant future growth
potential, and we plan to invest in both increased levels of innovation,
together with further brand support across multiple trading channels.
Developing Premium Brands
Our current portfolio of Premium brands, including Menabrea, Heverlee, Orchard
Pig and Outcider, represent growth opportunities across all our UK and Ireland
trading regions. The market dynamics of lower consumer volume consumption and
increased demand for premium drinks underpin our conviction that this remains
an area of potential growth.
Developing our leading Distribution business
Matthew Clark Bibendum ("MCB") benefits from a leading distribution footprint
that stretches across the entire UK hospitality sector, servicing multiple
outlets from small local operators to large national groups, providing best in
class insight and category expertise alongside market leading choice and
value. There is opportunity for sustainable medium-term growth in our
distribution business by taking an increased share of this broad customer
universe. To achieve this, we are investing in people, technology, and process
to continue to improve our overall customer proposition, equipping us to win
in the market as we develop with MCB's value, choice and service.
"Simply Better Growth" - creating an efficient and simplified business. We
commenced a transformation programme in the business in FY2025 with the
immediate focus on creating a stable platform to improve efficiency. This
programme has evolved further into a simplification and growth programme which
we are calling "Simply Better Growth," focusing the whole Group on a number
of material initiatives designed to simplify our operations and support our
growth. We will expand on this further during the course of FY2026.
CURRENT TRADING AND OUTLOOK
We have made an encouraging start to the year in both our Branded and
Distribution businesses, benefitting from increased customer numbers and
stable service levels alongside the continued mix trends towards LAD in the
On-Trade. With regards to costs, despite the well documented macroeconomic
uncertainties, most of our major cost lines are hedged for the current
financial year and we continue to seek further operational efficiency across
the Group. Whilst still early in the year, with our critical summer trading
period ahead of us, we remain confident of achieving our full year earnings
expectations.
The activity undertaken over the last year has created a more stable platform
for the business after several years of disruption. Despite the short-term
sector and category challenges, the Group remains well placed to navigate the
current economic environment and we are confident about the prospects for the
longer term and remain committed to achieving our target of €100m of
Operating Profit over the medium term. Our efforts for the year ahead will
be focused on delivering the basics required to support our brand growth
ambitions, winning in drinks distribution and improving overall efficiency.
Roger White
Chief Executive Officer
CHIEF FINANCIAL & TRANSFORMATION OFFICER'S REVIEW
Results For the Year
The Group generated net revenues of €1,665.5m and operating profit((i)) of
€77.1m, with year-end liquidity((ii)) of €369.0m and net debt((iii)) of
€212.3m. Net debt excluding IFRS 16 Leases was €80.9m. Adjusted basic
EPS((i)) for FY2025 is 11.7 cent. The Group's operating profit((i)) of
€77.1m is up from an operating profit((i)) of €60.0m in the prior year.
This improvement reflects improvement in both our Branded and Distribution
segments, as described in the Chair and CEO reports.
Managing liquidity((ii)) and net debt((iii)) have continued to be focus areas
for the Group throughout FY2025. The Group maintains a robust liquidity
position, with available liquidity((ii)) of €369.0m at 28 February 2025 and
at year end achieved a leverage ratio((vi)) of 0.9x.
Accounting Policies
As required by European Union ('EU') law, the Group's financial statements
have been prepared in accordance with International Financial Reporting
Standards ('IFRS') as adopted by the EU, and as applied in accordance with the
Companies Act 2014, applicable Irish law and the Listing Rules of the
Financial Conduct Authority.
Finance Costs, Income Tax and Shareholder Returns
Net finance costs before exceptional items of €21.3m were incurred in the
financial year (FY2024: €21.2m(i))). Of this amount, €4.6m relates to the
Group's debtor securitisation facility, €3.7m relates to USPP notes, €6.4m
relates to the Group's main bank lending facilities, €7.0m relates to lease
interest, €0.8m relates to amortisation of prepaid issue costs, €2.7m of
income relates to interest received and €1.5m relates to other interest
costs. The Group has incurred an exceptional finance expense of €0.4m
(FY2024: €2.9m) related to the impairment of loan notes due from the sale of
Vermont Hard Cider in FY2019.
In FY2025, the premium branded sector continued its significant contribution
to Group profitability and the Distribution sector recovered strongly from the
logistical issues suffered in the prior years. The Group earns most of its
profits in the UK and this impacted the Group's effective adjusted tax
rate((i)) for FY2025 of 19.9%. UK-generated profits are taxed at a rate of
25.0% compared to an effective rate of 15.0% in Ireland under Pillar Two
legislation effective 1 January 2024. The Group continues to manage its
effective tax rate in line with its published tax strategy.
Subject to Shareholder approval, the Board have proposed a final dividend of
4.13 cent per Ordinary share to be paid on 18 July 2025 to Shareholders
registered at the close of business on 13 June 2025. An interim dividend of
2.00 cent per Ordinary share was paid with respect to FY2025; therefore, the
Group's proposed full year dividend will amount to 6.13 cent per share. The
proposed full year dividend per share will represent a pay-out of 52.4% of the
full year reported adjusted diluted earnings per share. Using the number of
shares in issue at 28 February 2025 and excluding those shares for which it is
assumed that the right to dividend will be waived, this would equate to a
distribution of €15.8m and give a total distribution for FY2025 of €23.4m.
There is no scrip dividend alternative proposed. Total dividends for the prior
financial year were €22.8m.
The Group commenced a share buyback programme at the start of FY2025 and has
completed two tranches during the period. Each tranche repurchased ordinary
shares of the Group up to a maximum aggregate consideration of €15.0m. The
programme is progressing as planned and as of 28 February 2025, the Group has
repurchased 16,139,861 shares at a cost of €30.0m.
The programme forms part of the Group's plan to return up to €150.0m to
Shareholders through a combination of dividends and share buybacks. Across
FY2025, €52.9m has been returned to Shareholders, including the FY2024
dividends and FY2025 interim dividend. As previously announced, a further
€15.0m tranche of the Group's share buyback programme commenced on 1 May
2025. The Programme is underpinned by the Board's confidence in the
medium-term outlook for the business and its strong cash generation
capabilities. The Board also believes that the Programme represents the most
effective use of capital in the current environment.
Exceptional Items
A total exceptional charge, before taxation, of €36.3m was incurred in the
current financial year, €25.2m of which were cash items. In the opinion of
the Board, the presentation of these items as exceptional provides a more
useful analysis of the underlying performance of the Group. The majority of
this charge is from one-off restructuring and reorganisation costs arising
from the Group's transformation programme and commitment to reduce the
overhead cost base, together with professional fees relating to the accounting
misstatements identified in FY2024 and impairment of receivables owed in
respect of the Vermont Hard Cider disposal from prior periods.
Balance Sheet Strength and Debt Management
Balance sheet strength provides the Group with the financial flexibility to
pursue its strategic objectives. It is the Group's policy to ensure that a
medium/long-term debt funding structure is in place to provide the Group with
the financial capacity to promote the future development of the business and
to achieve its strategic objectives. The Group manages its borrowing
requirements by entering into committed loan facility agreements and by
holding USPP notes which diversifies the Group's sources of debt finance. In
December 2024, the Group exercised the second option to extend the maturity of
the multi-currency facility that started in May 2023, and maturity is now
extended to January 2030.
The Group maintains a £150.0m receivables securitisation facility (£120.0m
committed, £30.0m uncommitted), renewable annually in May. As at 28 February
2025, €109.8m of this facility was drawn (FY2024: €105.9m).
Cash Generation
Summary cash flow for the year ended 28 February 2025 is set out in the table
below. Overall liquidity remains robust and whilst the Group's free cashflow
(excluding net exceptional cash outflow) has declined by €16.8m, this
principally reflects one-off working capital impacts arising from a national
customer acquisition and the transfer of the cider business detailed in the
report above.
Capital expenditure in FY2025 amounted to €18.5m, which included €9.8m
relating to investment in equipment and site improvements at the Group's
Wellpark plant in Glasgow, including €5.3m for a can-filler replacement. A
further €6.2m was invested at the Group's production facilities in Ireland
including €3.4m for site improvements and €1.0m for a can-depallitiser.
Additionally, €2.5m was invested in depot improvements in the UK
distribution business.
Table 1 - Reconciliation of Adjusted EBITDA((iv)) to Operating profit
2025 2024
€m €m
Operating profit 45.8 (84.4)
Exceptional items 31.3 144.4
Operating profit before exceptional items 77.1 60.0
Amortisation and depreciation charge 34.9 33.7
Adjusted EBITDA((iv)) 112.0 93.7
Table 2 - Cash flow summary
2025 2024
€m €m
Adjusted EBITDA((iv)) 112.0 93.7
Working capital 6.6 30.4
Advances to customers (0.9) 3.5
Net finance costs excluding exceptional finance costs (21.0) (17.6)
Tax paid (7.1) (4.1)
Pension contributions paid (0.3) (0.4)
Tangible/intangible expenditure (18.5) (20.0)
Net proceeds on disposal of property plant & equipment 1.2 0.1
Translational foreign exchange movements (2.2) -
Exceptional items paid (25.2) (21.8)
Other* (1.0) -
Free cash flow((v)) 43.6 63.8
Free cash flow((v)) 43.6 63.8
Net exceptional cash outflow 25.2 21.8
Free cash flow((v)) excluding net exceptional cash outflow 68.8 85.6
2025 2024
Reconciliation to Group Cash Flow Statement
€m €m
Free cash flow((v)) 43.6 63.8
Dividends paid (22.9) (22.3)
Drawdown of debt 5.0 130.0
Payment of debt issue costs (0.5) (3.4)
Repayment of debt - (105.0)
Payment of lease liabilities (18.5) (20.2)
Share buy-back (30.0) -
Disposal of asset held for sale - -
Disposal of subsidiary/equity investment 2.2 -
Net (decrease) / increase in cash (21.1) 42.9
* Other relates to the add back of share options, pension contributions:
adjustments from charge to payment and the add back of intangible asset
impairment.
Accounting function, controls, and systems
The historical accounting issues identified in FY2024 brought to light
fundamental organisational and control weaknesses within the Group's finance
and accounting functions. The Group has historically operated a decentralised
accounting function, but the increased integration and complexity of the Group
has necessitated a move to a standardised set of accounting processes and
controls and the Group is automating processes where possible to reduce the
risk of errors and enforce consistency of approach. Additionally, the Group
has strengthened its Risk and Internal Audit functions during the period and
launched a programme to identify, improve and monitor its key financial and
non-financial controls. The Group has worked tirelessly in implementing these
changes and improvements in its financial management, controls, and governance
and whilst FY2025 has been an extremely challenging year, the improved
financial discipline imposed across the Group has been instrumental in
supporting our recovery from the challenges of recent years.
Retirement Benefits
In compliance with IFRS, the net assets and actuarial liabilities of the
various defined benefit pension schemes operated by Group companies, computed
in accordance with IAS 19 Employee Benefits, are included on the face of the
Consolidated Balance Sheet as retirement benefits.
Independent actuarial valuations of the defined benefit pension schemes are
carried out on a triennial basis using the attained age method. The most
recently completed actuarial valuations of the ROI defined benefit pension
schemes were carried out with an effective date of 1 January 2024 while the
date of the most recent actuarial valuation of the NI defined benefit pension
scheme was 31 December 2023. As a result of these updated valuations the Group
has committed to contributions of €294k per annum in the calendar year 2025
and increasing at a rate of 2.3% each calendar year thereafter. There is no
funding requirement with respect to the Group's executive defined benefit
pension scheme or the Group's NI defined benefit pension scheme, both of which
are in surplus. The Group has an unconditional right to these surpluses when
the scheme concludes. The Trustees of the C&C Group Executive Pension and
Life Assurance Scheme entered into an annuity buy in contract with effect from
27 February 2024 in respect of current pensioners in payment. While the
obligation to provide pensions to these members remains a liability of the
Scheme, the insurance contract provides a matching cash flow and longevity
hedge. The Group was supportive of the Trustees actions as it further reduces
risk within that Scheme.
There are 2 active members in the NI scheme and 43 active members (less than
10% of total membership) in the ROI staff defined benefit pension scheme and
no active members in the executive defined benefit pension scheme.
At 28 February 2025, the retirement benefits computed in accordance with IAS
19 Employee Benefits amounted to a net surplus of €32.0m, gross of deferred
tax (€22.7m surplus with respect to the Group's staff defined benefit
pension scheme, €6.0m surplus with respect to the Group's executive defined
benefit pension scheme and a €3.3m surplus with respect to the Group's NI
defined benefit pension scheme).
The key factors influencing the change in valuation of the Group's defined
benefit pension scheme obligations gross of deferred tax are as outlined
below:
€m
Net surplus at 1 March 2024 34.3
Translation adjustment 0.2
Employer contributions paid 0.3
Charge to Other Comprehensive Income (3.7)
Credit to Income Statement 0.9
Net surplus at 28 February 2025 32.0
The decrease in the surplus from €34.3m at 29 February 2024 to a surplus of
€32.0m at 28 February 2025 is primarily due to an actuarial loss of €3.7m
over the year. The decrease in the net surplus of the Group's defined benefit
pension schemes from the 29 February 2024 to 28 February 2025, as computed in
accordance with IAS 19 Employee Benefits, is primarily due to an increase in
liabilities as a result of the decrease in corporate bond yields over the year
somewhat offset by reduced benefit inflation expectation.
Financial Risk Management
The main financial market risks facing the Group continue to include commodity
price fluctuations, foreign currency exchange rate risk, interest rate risk,
geopolitical risk and liquidity risk.
The Board of Directors set the treasury policies and objectives of the Group,
the implementation of which are monitored by the Audit Committee.
Currency Risk Management
The reporting currency and the currency used for all planning and budgetary
purposes is Euro. However, as the Group transacts in foreign currencies and
consolidates the results of non-Euro reporting foreign operations, it is
exposed to both transaction and translation currency risk.
Currency transaction exposures primarily arise on the Sterling, US and
Australian Dollar denominated sales of the Group's Euro subsidiaries and Euro
purchases in the Group's GB business. The Group seeks to minimise this
exposure, when possible, by offsetting the foreign currency input costs
against the same foreign currency receipts, creating a natural hedge. When the
remaining net currency exposure is material, the Group enters into foreign
currency forward contracts to mitigate and protect against adverse movements
in currency risk and remove uncertainty over the foreign currency equivalent
cash flows. Forward foreign currency contracts are used to manage this risk in
a non-speculative manner when the Group's net exposure exceeds certain limits
as set out in the Group's treasury policy. In the current financial year, the
Group had €11.8m of forward foreign currency cash flow hedges outstanding.
The average rate for the translation of results from Sterling currency
operations was €1:£0.8430 (year ended 29 February 2024: €1:£0.8653) and
from US Dollar operations was €1:$1.0746 (year ended 29 February 2024:
€1:$1.0831).
Commodity Price and Other Risk Management
The Group is exposed to commodity price fluctuations, and manages this risk,
where economically viable, by entering into fixed price supply contracts with
suppliers. The Group does not directly enter into commodity hedge contracts.
The cost of production is also sensitive to variability in the price of
energy, primarily gas and electricity. The Group's policy is to fix the cost
of a certain level of energy requirement through fixed price contractual
arrangements directly with the Group's energy suppliers.
The Group seeks to mitigate risks in relation to the continuity of supply of
key raw materials and ingredients by developing trade relationships with key
suppliers and an agreement with farmers in Scotland for the supply of malted
barley.
In addition, the Group enters into insurance arrangements to cover certain
insurable risks where external insurance is considered by management to be an
economic means of mitigating these risks.
Andrew Andrea
Chief Financial and Transformation Officer
Notes to the Final Results for the 12 Months Ended 28 February 2025
(i) Before exceptional items.
(ii) Liquidity is defined as cash plus undrawn amounts under the Group's
revolving credit facility.
(iii) Net debt comprises borrowings (net of issue costs) less cash, less lease
liabilities capitalised under IFRS 16 Leases.
(iv) Adjusted EBITDA is earnings before exceptional items, finance income,
finance expense, tax, depreciation, amortisation charges and equity accounted
investments' profit/(loss) after tax. A reconciliation of the Group's
operating profit to EBITDA is set out above.
(v) Free Cash Flow ('FCF') comprises cash flow from operating activities net
of capital investment cash outflows which form part of investing
activities. A reconciliation of FCF to net movement in cash per the Group's
Cash Flow Statement is set out above.
(vi) Leverage ratio is defined as net debt (excluding lease liabilities) /
adjusted EBITDA (on a pre-IFRS 16 basis)
Appendix
Consolidated Income Statement
Year ended 28 February 2025 Year ended 29 February 2024
Before exceptional items Exceptional items Total Before exceptional items Exceptional items Total
(Note 3) (Note 3)
Notes €m €m €m €m €m €m
Revenue 2 2,009.4 - 2,009.4 2,023.0 - 2,023.0
Excise duties (343.9) - (343.9) (370.5) - (370.5)
Net revenue 2 1,665.5 - 1,665.5 1,652.5 - 1,652.5
Operating costs (1,588.4) (31.3) (1,619.7) (1,592.5) (144.4) (1,736.9)
Group operating profit/(loss) 1 77.1 (31.3) 45.8 60.0 (144.4) (84.4)
Impairment of assets held for sale 3 - - - - (3.3) (3.3)
Impairment of promissory note 3 - (4.5) (4.5) - - -
Net loss on disposal 3 - (0.1) (0.1) - - -
Finance income 4 2.7 - 2.7 0.2 0.2 0.4
Finance expense 4 (23.9) (0.4) (24.3) (21.4) (2.9) (24.3)
Share of equity accounted investments' profit after tax 0.1 - 0.1 - - -
Profit/(loss) before tax 55.9 (36.3) 19.6 38.8 (150.4) (111.6)
Income tax expense 5 (11.1) 5.1 (6.0) (6.9) 5.0 (1.9)
Group profit/(loss) for the financial year 44.8 (31.2) 13.6 31.9 (145.4) (113.5)
Basic earnings/(losses) per share (cent) 6 3.5 (29.0)
Diluted earnings/(losses) per share (cent) 6 3.5 (29.0)
Consolidated Statement of Comprehensive Income
2025 2024
Notes €m €m
Other Comprehensive Income:
Items that may be reclassified to Income Statement in subsequent years:
Foreign currency translation differences arising on the net investment in 14.5 9.2
foreign operations
Loss relating to cash flow hedges (0.7) (0.8)
Items that will not be reclassified to Income Statement in subsequent years:
Revaluation of property, plant and equipment 1.8 0.2
Deferred tax on revaluation of property, plant and equipment (0.2) (0.2)
Remeasurement on retirement benefits (3.7) (9.9)
Deferred tax on remeasurement 0.8 1.4
Net profit/(loss) recognised directly within Other Comprehensive Income 12.5 (0.1)
Group profit/(loss) for the financial year 13.6 (113.5)
Total comprehensive income/(loss) for the financial year 26.1 (113.6)
Consolidated Balance Sheet
2025 2024
Notes €m €m
ASSETS
Non-current assets
Property, plant and equipment 10 274.4 247.7
Goodwill and intangible assets 9 533.0 521.9
Equity accounted investments and financial assets 1.5 1.4
Retirement benefits 8 32.0 34.3
Deferred tax assets 25.6 29.4
Financial assets - 4.9
Trade and other receivables 34.9 37.0
901.4 876.6
Current assets
Inventories 156.5 170.7
Trade and other receivables 134.4 149.1
Current income tax assets 9.8 2.0
Financial assets 0.7 0.7
Cash and cash equivalents 144.0 160.1
445.4 482.6
Assets held for sale 1.1 8.4
446.5 491.0
TOTAL ASSETS 1,347.9 1,367.6
EQUITY
Capital and reserves
Equity share capital 3.8 4.0
Share premium 347.2 347.2
Treasury shares (36.2) (36.3)
Other reserves 103.9 89.2
Retained income 142.0 182.9
Total Equity 560.7 587.0
LIABILITIES
Non-current liabilities
Lease liabilities 111.7 90.8
Interest bearing loans and borrowings 225.6 218.7
Other financial liabilities 11 5.2 5.8
Provisions 12 7.0 7.9
Deferred tax liabilities 38.6 35.7
388.1 358.9
Current liabilities
Lease liabilities 19.7 19.3
Derivative financial liabilities 0.4 0.2
Other financial liabilities 11 1.0 1.0
Trade and other payables 370.4 397.6
Provisions 12 7.6 2.2
399.1 420.3
Liabilities directly associated with the assets held for sale - 1.4
Total liabilities 787.2 780.6
TOTAL EQUITY AND LIABILITIES 1,347.9 1,367.6
Consolidated Cash Flow Statement
2025 2024
Notes €m €m
CASH FLOWS FROM OPERATING ACTIVITIES
Group profit/(loss) for the year 13.6 (113.5)
Share of equity accounted investments profit after tax (0.1) -
Finance income 4 (2.7) (0.4)
Finance expense 4 24.4 24.3
Income tax expense 6.0 1.9
Impairment of goodwill and intangible assets - 125.0
Impairment of Loan Notes 3 4.5 -
Impairment of right-of-use assets 3 2.5 -
Impairment of property, plant and equipment 3 1.8 -
Depreciation of property, plant and equipment 32.1 31.3
Remeasurement of dilapidations (1.1) -
Amortisation of intangible assets 9 2.8 2.4
Revaluation of property, plant and equipment (0.2) -
Loss on sale of businesses and investments 3 0.1 -
Profit on disposal of property, plant and equipment (0.1) -
Translational foreign exchange movements (2.2) -
Charge for equity settled share-based payments 1.2 0.9
Pension contributions: adjustment from credit to payment (1.2) (1.9)
81.4 73.3
Decrease / (increase) in inventories 18.4 (8.0)
Decrease in trade and other receivables 23.9 16.0
(Decrease) / increase in trade and other payables (38.8) 38.9
Increase / (decrease) in provisions 4.1 (12.3)
89.0 107.9
Interest received 2.7 0.2
Interest and similar costs paid (23.7) (20.7)
Income taxes paid (7.1) (4.1)
Net cash inflow from operating activities 60.9 83.3
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (16.6) (18.1)
Purchase of intangible assets (1.9) (1.9)
Net proceeds from disposal of property, plant and equipment - 0.1
Proceeds from sale of held-for-sale assets and investments 3.4 0.4
Net cash inflow / (outflow) from investing activities (15.1) (19.5)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid to Company shareholders (22.9) (22.3)
Drawdown of debt 5.0 130.0
Share buybacks (30.0) -
Payment of debt issue costs (0.5) (3.4)
Repayment of debt - (105.0)
Payment of lease liabilities (18.5) (20.2)
Net cash outflow from financing activities (66.9) (20.9)
Net (decrease) / increase in cash (21.1) 42.9
Reconciliation of opening to closing cash
Cash and cash equivalents at beginning of year 160.1 115.3
Translation adjustment 5.0 1.9
Net increase in cash and cash equivalents (21.1) 42.9
Cash and cash equivalents at end of financial year 144.0 160.1
Consolidated Statement of Changes in Equity
Equity share capital Share premium Other capital reserves* Cash flow hedge reserve Share-based payments reserve Currency translation reserve Revaluation reserve Treasury shares Retained income Total
€m €m €m €m €m €m €m €m €m €m
At 28 February 2023 4.0 347.2 25.8 1.1 6.1 33.9 14.2 (36.4) 326.2 722.1
Loss for the financial year - - - - - - - - (113.5) (113.5)
Other comprehensive income/(loss) - - - (0.8) - 9.2 0.2 - (8.7) (0.1)
Total comprehensive income/(loss) - - - (0.8) - 9.2 0.2 - (122.2) (113.6)
Dividend paid on ordinary shares - - - - - - - - (22.4) (22.4)
Reclassification of share-based payments reserve - - - - (1.7) - - - 1.7 -
Sale of treasury shares/purchase of shares to satisfy employee share - - - - - - - (0.1) (0.4) (0.5)
entitlements
Transfer of Treasury Shares - - - - (0.2) - - 0.2 - -
Equity settled share-based payments - - - - 1.4 - - - - 1.4
Total transactions with owners - - - - (0.5) - - 0.1 (21.1) (21.5)
At 29 February 2024 4.0 347.2 25.8 0.3 5.6 43.1 14.4 (36.3) 182.9 587.0
Profit for the financial year - - - - - - - - 13.6 13.6
Other comprehensive income/(loss) - - - (0.7) - 14.5 1.6 - (2.9) 12.5
Total comprehensive income/(loss) - - - (0.7) - 14.5 1.6 - 10.7 26.1
Dividend paid on ordinary shares - - - - - - - - (22.9) (22.9)
Reclassification of share-based payments reserve - - - - (1.6) - - - 1.6 -
Purchase of shares to satisfy employee share entitlements - - - - - - - (0.4) (0.3) (0.7)
Purchase of treasury shares - Share buybacks - - - - - - - (30.0) - (30.0)
Cancellation of treasury shares (0.2) - 0.2 - - - - 30.0 (30.0) -
Transfer of Treasury Shares - - - - (0.5) - - 0.5 - -
Equity settled share-based payments - - - - 1.2 - - - - 1.2
Total transactions with owners (0.2) - 0.2 - (0.9) - - - (51.6) (52.4)
At 28 February 2025 3.8 347.2 26.0 (0.4) 4.7 57.6 16.0 (36.2) 142.0 560.7
1. ACCOUNTING POLICIES
General information
The financial information prepared in accordance with IFRS as adopted by the
European Union included in this report does not constitute the statutory
financial statements for the purposes of Chapter 4 of Part 6 of the Companies
Act 2014. Full statutory accounts for the year ended 28 February 2025 prepared
in accordance with IFRS, upon which the auditors have given an unqualified
report, have not yet been filed with the Registrar of Companies. Full
statutory accounts for the year ended 29 February 2024, prepared in accordance
with IFRS and containing an unqualified audit report, have been delivered to
the Registrar of Companies. The information included has been extracted from
the Group's financial statements, which have been approved by the Board of
Directors on 27 May 2025.
Basis of preparation
While the financial information included in this press release has been
prepared in accordance with International Financial Reporting Accounting
Standards ('IFRS'), as adopted by the EU and as applied in accordance with
Companies Act 2014, this announcement does not itself contain sufficient
information to comply with these standards. The financial information has been
prepared using accounting policies and methods of computation consistent with
those applied in the financial statements for the year ended 29 February 2024,
with the exception of the change in accounting policy and new accounting
standards adopted in the year set out below. The Company's full financial
statements for the year ended 28 February 2025 are prepared in compliance with
International Financial Reporting Accounting Standards ('IFRS'), as adopted by
the EU and as applied in accordance with Companies Act 2014.
Going concern basis
The Directors have adopted the going concern basis in preparing the financial
statements after assessing the Group's principal risks.
Management of liquidity and net debt have been a key focus for the Group
throughout FY2025. The Group have reported net debt including leases and
liquidity of €212.3m and €369.0m respectively at 28 February 2025,
compared with €168.0m and €390.1m respectively in FY2024. The Group
delivered a leverage ratio (excluding leases) of 0.9x at 28 February 2025. The
Covenant ratio for the Group's RCF and term loan facilities was 1.0x at 28
February 2025, well within the covenant limit of 3.5x. Both measures are
calculated on a pre-IFRS16 basis.
The Group successfully completed a refinancing of its multi-currency facility
and Euro term loan agreement which was repaid in a single instalment following
the publication of the Group's FY2023 Results in May 2023. The Group entered
into a new five-year committed sustainability-linked facility comprised of a
€250m multi-currency revolving loan facility and a €100m non-amortising
Euro term loan. The facility offers optionality of two 1-year extensions to
the maturity date callable within 12 months and 24 months of the initial
drawdown date respectively. The multi-currency facility and the Euro term
syndicate comprises six banks - ABN Amro Bank, Allied Irish Bank, Bank of
Ireland, Barclays Bank, HSBC and Rabobank. In FY2025, the Group exercised the
second optional extension of the facilities, resulting in maturity being
extended to January 2030 (FY2030) on both the multi-currency facility and Euro
term loan.
The headroom on the covenants within the financing facilities has been
reviewed in detail by management and assessed by the Directors. Given that the
cash flow forecasts demonstrate significant headroom on the covenants within
the financing facilities, the Directors have concluded that the covenants will
be satisfied and therefore consider it appropriate to adopt the going concern
basis of accounting with no material uncertainties as to the Group's ability
to continue to do so.
New accounting standards adopted by the Group
The Group adopted the following new accounting policies on 1 March 2024 to
comply with new standards issued and amendments to IFRS:
• Amendments to IAS 1: Classification of liabilities as Current or
Non-Current
• Amendments to IAS 1: Classification of Liabilities as Current or
Non-current and Non-current Liabilities with Covenants
• Amendments to IFRS 16: Lease liability in a Sale and Leaseback
• Amendments to IAS 7 and IFRS 7: Supplier Finance Arrangements
The adoption of the standards and interpretations listed above has not led to
any changes to the Group's accounting policies or had any other material
impact on the financial position or performance of the Group.
New accounting standards in issue but not yet effective
The following amendment to IFRS has been issued by the IASB and is effective
for annual periods beginning on or after 1 January 2025.
• Lack of Exchangeability - Amendments to IAS 21
• Amendments to the Classification and Measurement of Financial
Instruments-Amendments to IFRS 9 and IFRS 7.
• Annual Improvements to IFRS Accounting Standards - Volume 11
• IFRS 18: Presentation and Disclosure in Financial Statements
• IFRS 19: Subsidiaries without Public Accountability: Disclosures
• Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9
and IFRS 7)
The adoption of the above standards and interpretations is not expected to
lead to any changes to the Group's accounting policies nor have any other
material impact on the financial position or performance of the Group.
2. SEGMENTAL REPORTING
The Group continually reviews and updates the manner in which it monitors and
controls its financial operations, resulting in changes in the manner in which
information is classified and reported to the Chief Operating Decision Maker
("CODM"). The CODM, identified as the Executive Directors, assesses and
monitors the operating results of segments separately via internal management
reports in order to manage the business and allocate resources effectively.
Following a change in executive leadership and realignment of business
strategy, which was effective from 1 March 2024, the Group has changed its
operating segments from a geographic basis to one based on operations in the
current year. The previous segments of Ireland and Great Britain have been
replaced by two new segments, Branded and Distribution. The revised basis of
segmentation reflects the operating model of the business and in all instances
the changes were deemed necessary to better enable the CODM to evaluate the
results of the business in the context of the economic environment in which
the business operates, to make appropriate strategic decisions and to more
accurately reflect the business model under which the Group now operates in
both areas. All comparative amounts have been restated to reflect the new
basis of segmentation. The change in segments had no impact on total Group
revenue, net revenue or operating profit. The identified business segments are
as follows:
(i) Branded
This segment is defined as brands fully owned or that are exclusively
distributed by the Group, whereby the Group is responsible for marketing as
well as sale of the brand in the associated geography. It includes the
financial results from sale of own branded products being principally Bulmers,
Tennent's, Magners and the growing portfolio of premium beers and ciders
including Drygate Brewing, Five Lamps, Heverlee, Menabrea and Orchard Pig.
(ii) Distribution
This segment is defined as third-party brands sold through the Group's
distribution businesses and brands where the Group acts as an exclusive agent
for a brand in a specific geography. It includes the results from the MCB
business which includes third party brand distribution, wine wholesaling and
distribution, together with the Gleesons distribution business in Ireland and
the distribution of private label products.
The Group's analysis by segment includes both items directly attributable to a
segment and those, including central overheads, which are allocated on a
reasonable basis in presenting information to the CODM. Inter-segmental
revenue is not material and thus not subject to separate disclosure.
(a) Analysis by segment
2025 2024 (Restated)
Revenue Net revenue Operating profit Revenue Net revenue Operating profit
Group Notes €m €m €m €m €m €m
Branded 452.6 298.6 46.1 467.9 312.7 44.6
Distribution 1,556.8 1,366.9 31.0 1,555.1 1,339.8 15.4
Total before exceptional items 2,009.4 1,665.5 77.1 2,023.0 1,652.5 60.0
Exceptional items 3 - - (31.3) - - (144.4)
Total 2,009.4 1,665.5 45.8 2,023.0 1,652.5 (84.4)
Impairment of assets held for sale 3 - (3.3)
Impairment of promissory note 3 (4.5) -
Net loss on disposal 3 (0.1) -
Finance income 4 2.7 0.2
Finance income exceptional items 3 ,4 - 0.2
Finance expense 4 (24.0) (21.4)
Share of equity accounted investments' profit after tax 0.1 -
Finance expense exceptional items 3, 4 (0.4) (2.9)
Profit / (loss) before tax 19.6 (111.6)
The exceptional items included in operating profit in the current financial
year are a €31.3m charge (FY2024: €144.4m charge), of which €14.2m
(FY2024: €132.0m) relates to Branded and €17.1m (FY2024: €12.4m) relates
to Distribution. The loss on disposal of €0.1m comprises a loss of €0.9m
related to the sale of the Group's Portuguese businesses which were classified
as a disposal group as at 29 February 2024, offset by a gain of €0.4m
recognised on disposal of the Group's equity investment in Beck & Scott
and a gain of €0.4m recognised on remeasurement of the Group's equity
investment in Drygate Brewing Company. The impairment loss of €3.3m
recognised in FY2024 related to the Group's Portuguese businesses.
(b) Other segment information
2025 2024 (Restated)
Tangible and intangible expenditure Lease additions Depreciation, amortisation and impairment Tangible and intangible expenditure Lease additions Depreciation, amortisation and impairment
€m €m €m €m €m €m
Branded 16.8 5.7 21.6 8.7 8.1 20.4
Distribution 3.4 16.6 17.9 7.0 43.4 13.3
Total 20.2 22.3 39.2 15.7 51.5 33.7
(c) Geographical analysis of segment revenue and net revenue
Revenue Net revenue
2025 2024 2025 2024
€m €m €m €m
Ireland 364.4 397.6 269.5 284.8
Great Britain 1,624.5 1,602.7 1,375.5 1,346.6
International* 20.5 22.7 20.5 21.1
Total 2,009.4 2,023.0 1,665.5 1,652.5
* International as a geographic region consists of multiple countries that
in aggregate represent 1% of Group revenue.
The geographical analysis of revenue and net revenue is based on the location
of the third-party customers.
(d) Geographical analysis of non-current assets
Ireland Great Britain International Total
At 28 February 2025 €m €m €m €m
Property, plant and equipment 80.5 192.8 1.1 274.4
Goodwill and intangible assets* 160.7 350.4 21.9 533.0
Equity accounted investments and financial assets 0.6 0.8 0.1 1.5
Total 241.8 544.0 23.1 808.9
Ireland Great Britain International Total
At 29 February 2024 €m €m €m €m
Property, plant and equipment 77.3 168.3 2.1 247.7
Goodwill and intangible assets* 156.5 343.5 21.9 521.9
Equity accounted investments and financial assets 0.5 0.7 0.2 1.4
Total 234.3 512.5 24.2 771.0
* The goodwill impairment of €3.3m disclosed is included in the Great
Britain operating segment in the table above.
The geographical analysis of non-current assets, with the exception of
goodwill and intangible assets, is based on the geographical location of the
assets. The geographical analysis of goodwill and intangible assets is
allocated based on the country of destination of origin.
3. EXCEPTIONAL ITEMS
2025 2024
Group €m €m
Restructuring costs (a) (23.8) (4.5)
Risk management and control reviews (b) (6.1) -
Director settlement arrangements (c) (1.8) (2.0)
Bittersweet cider apple contracts (d) 0.3 (1.1)
Impairment of goodwill (e) - (125.0)
ERP implementation costs (f) 0.1 (10.4)
Deposit Return Scheme costs (g) - (1.4)
Operating loss exceptional items (31.3) (144.4)
Impairment of assets held for sale (h) - (3.3)
Vermont promissory note (i) (4.5) -
Net loss on disposal (j) (0.1) -
Finance income (i) - 0.2
Finance expense (i) (0.4) (2.9)
Included in profit before tax (36.3) (150.4)
Income tax credit (k) 5.1 5.0
Included in profit after tax (31.2) (145.4)
(a) Restructuring costs: In FY2025 the Group commenced a number of strategic
initiatives to realign support functions and optimise organisational
structures to more efficiently support the business operations. The overall
objective of the strategic initiatives is to reduce costs and drive efficiency
improvements across the operating model and enhance the future growth of the
business. During FY2025 the Group incurred costs of €23.8m (2024: €4.5m)
primarily related to the following:
- €11.7m (FY2024: €1.2m) related to the continued rationalisation
of the Group's depot and distribution operations, reflecting redundancy costs
and other onerous costs with respect of the closure of Newbridge, Crayford and
Borrisoleigh depots in Edinburgh, London and Tipperary respectively. The Group
also incurred further closure costs related to the Shepton Mallet site near
Bristol and additionally exited their depot facility at Park Royal in London
and transferred the related assets and operations to the new Orbital West
London facility.
- €11.6m (FY2024: €3.3m) related to the ongoing strategic review
of the Group's commercial, supply and head office functions to optimise
organisational design of the business and enable a more efficient and robust
governance and reporting structure moving forward. This charge primarily
reflects costs associated with implementing and embedding transformation
process improvements and related redundancy costs. The Group also reflected
onerous costs associated with the closure of its Regents Park Office in
London.
- €0.5m (FY2024: €nil) of brand development costs relating to the
Group's strategic vision for cider, including the relaunch of the Magners
brand following the agreement with BBG to reassume control and distribution of
Magners and the wider cider portfolio in Great Britain as of 1 January 2025.
- €17.7m (2024: €4.4m) of these costs were cash settled in the
current financial period.
(b) Risk management and control reviews: During FY2025, the Group incurred
costs of €6.1m associated with the control issues notified to the market on
7 June 2024 which caused the Group to defer publication of its FY2024 annual
results. This costs primarily related to legal and professional costs
associated with internal and external reviews into the issues, additional
audit and accounting fees, retention costs for key personnel and external
accounting support costs.
Cash spend in the current financial period totalled €6.1m in respect of
these costs.
(c) Director settlement arrangements: During FY2025, €1.8m (FY2024:
€2.0m) of redundancy, legal and other related costs were incurred relating
to the Group's Directors, including €1.4m in respect of the Group's former
CEO, Patrick McMahon and an amount in respect of other members of the senior
leadership team. In FY2024, the director settlement arrangement was in respect
of the Group's former CEO David Forde.
Cash spend in the current financial period totalled €1.4m (FY2024: €2.0m)
in respect of these costs.
(d) Bittersweet cider apple contracts: Following the significant alcohol
duty reforms in the UK during FY2024, the Group reassessed its bittersweet
cider apple requirements resulting in a €0.3m apple concentrate inventory
impairment and accrual of €0.8m of costs associated with the exit of surplus
apple supply arrangements. During FY2025, the Group recognised a net gain in
respect of the disposal of excess apple inventory of €0.3m.
(e) Impairment of goodwill: In FY2024, a non-cash impairment charge of
€125.0m was recognised in respect of the C&C Brands cash-generating unit
reflecting challenging trading conditions in the UK cider market. During
FY2025, C&C management announced a new strategic vision for cider,
including the relaunch of the Magners brand.
(f) ERP implementation costs: In 2023, the Group undertook a strategic
project to introduce a new and complex enterprise resource planning ('ERP')
system in the MCB business in Great Britain. The implementation took longer
and was significantly more challenging and disruptive than originally
envisaged, with a consequent material impact on service and profitability
within MCB. In total, a cash cost of €10.4m was incurred during FY2024 to
restore service levels to normal.
(g) Deposit Return Scheme costs: During FY2024, the Group wrote off balances
paid during the year associated with the Deposit Return Scheme ('DRS') in
Scotland following the announcement by the Scottish Government in June 2023
that the scheme would be delayed until at least October 2025. The Group also
incurred and paid additional one-off packaging and marketing related costs
following the introduction of the DRS in Ireland during FY2024.
(h) Impairment of assets held for sale: Following a reassessment of the
Group's supply and logistics operations for raw materials inputs, the Group
classified its Portuguese businesses, which produced fruit concentrates, as a
disposal group held for sale as at 29 February 2024. The results for the year
ended 29 February 2024 included a non-cash goodwill write-off of €3.3m
recognised in respect of the re-measurement of the fair values of the disposal
group. The transaction completed on 6 November 2024 and a loss on disposal of
€0.9m was recognised for the year ended 28 February 2025 as set out in (j)
below.
(i) Vermont promissory note: During FY2025, the Group recognised a
provision of €4.5m against the outstanding promissory note receivable on the
disposal of the Group's subsidiary Vermont Hard Cider Company in 2022.
Finance income: During FY2024, the Group earned finance income of €0.2m
relating to the promissory notes issued as part of the disposal of the Group's
subsidiary Vermont Hard Cider Company in FY2022.
Finance expense: The Group provided for finance expenses of €0.4m relating
to the interest income receivable on the promissory notes referenced above.
In FY2024 the group incurred finance expense of €2.9m primarily related to
financing charges associated with increased utilisation of the Group's debtor
securitisation facility to meet working capital requirements arising from the
ERP system implementation disruption (see Note (f) above); and interest on
lease liabilities arising from supply-chain restructuring activity undertaken
(see Note (a) above).
(j) Net loss on disposal: Net loss on disposal includes a loss of €0.9m
from the sale of the Group's Portuguese businesses (see(h) above and Note 12)
including legal costs of €0.1m, a gain of €0.4m on the disposal of the
Group's 50% investment in joint venture entity Beck & Scott (Services) Ltd
and a gain of €0.4m on the remeasurement of the existing interest of 49% in
the joint venture entity Drygate Brewing Company Ltd.
(k) Income tax credit: The tax credit in the current financial year, with
respect to the above exceptional items, amounted to a credit of €5.1m
(FY2024: €5.0m credit).
4. FINANCE INCOME AND EXPENSE
2025 2024
Group €m €m
Finance expense:
Interest expense on borrowings (11.9) (11.6)
Other finance expense* (5.1) (5.8)
Interest on lease liabilities (7.0) (4.0)
Total finance expense before exceptional items (24.0) (21.4)
Exceptional finance expense:
Interest expense on borrowings (0.4) (2.1)
Interest on lease liabilities - (0.8)
Total exceptional finance expense (0.4) (2.9)
Total finance expenses (24.4) (24.3)
Finance income:
Interest income 2.7 0.2
Total finance income before exceptional items 2.7 0.2
Exceptional finance income:
Interest income - 0.2
Total exceptional finance income - 0.2
Total finance income 2.7 0.4
* Other finance expense includes debtor securitisation costs of €4.6m
(FY2024 €5.0m)
5. INCOME TAX
The effective tax rate was 30.6% (last year: (1.7%)). The effective tax rate
in respect of the profit before adjusting items was 19.9% (last year: 17.8%).
6. EARNINGS PER SHARE
2025 2024
Group Millions Millions
Weighted average number of shares for basic earnings per share 383.1 391.1
Adjustment for the effect of conversion of options 32.5 2.5
Weighted average number of shares for diluted earnings per share 385.6 393.6
2025 2024
€m €m
Group profit/(loss) for the financial year 13.6 (113.5)
Adjustment for exceptional items, net of tax (Note 3) 31.2 145.4
Earnings as adjusted for exceptional items, net of tax 44.8 31.9
2025 2024
Cents Cents
Basic earnings per share:
Basic earnings / (losses) per share 3.5 (29.0)
Adjusted basic earnings per share 11.7 8.1
2025 2024
Cents Cents
Diluted earnings per share:
Diluted earnings / (losses) per share 3.5 (29.0)
Adjusted diluted earnings per share 11.6 8.1
7. DIVIDENDS
2025 2024
Group €m €m
Declared during the financial year:
Final dividend for the year ended 29 February 2024: 3.97 cents per share 15.3 14.9
(FY2024: 3.79 cents per share)
Interim dividend at 31 August 2025: 2.00 cents per share 7.6 7.5
(FY2024: 1.89 cent per share)
Total equity dividends 22.9 22.4
Settled as follows:
Paid in cash 22.9 22.3
Accrued with respect to LTIP dividend entitlements - 0.1
Total equity dividends 22.9 22.4
Proposed after the end of the year and not recognised as a liability
Final dividend for the year ended 28 February 2025: 4.13 cents per share 15.8 13.4
(FY2024: 3.97 cents per share)
In order to achieve better alignment of the interest of share-based
remuneration award recipients with the interests of Shareholders, Shareholder
approval was given at the 2012 AGM to a proposal that awards made and that
vest under the LTIP incentive programme should reflect the equivalent value to
that which accrues to Shareholders by way of dividends during the vesting
period. The Deferred Bonus Plan and the Buy-Out Awards also accrue dividends
during the vesting period.
8. RETIREMENT BENEFITS
2025 2024
€m €m
Net surplus at 1 March 34.3 42.2
Translation adjustment 0.2 0.2
Employer contributions 0.3 0.4
Charge to Other Comprehensive Income (3.7) (9.9)
Credit to Income Statement 0.9 1.4
Closing net retirement benefit surplus 32.0 34.3
2025 2024
€m €m
Total market value of assets 169.5 171.2
Present value of scheme liabilities (137.5) (136.9)
Net retirement benefit surplus 32.0 34.3
2025 2024
€m €m
Analysed in the balance sheet as:
Retirement benefit asset 32.0 34.3
Net retirement benefit surplus 32.0 34.3
The financial assumptions for the pension scheme has been updated by
independent qualified actuaries to take account of the requirements of IAS 19
'Employee Benefits' in order to assess the liabilities of the schemes. A
reduction in discount rate used to value the schemes' liabilities by 0.25%
would increase the valuation of liabilities by €4.8m (FY2024: €4.9m) while
an increase in inflation/salary increase expectations of 0.25% would increase
the valuation of liabilities by €4.9m (FY2024: €4.7m). The sensitivity is
calculated by changing the individual assumption while holding all other
assumptions constant.
9. GOODWILL AND INTANGIBLE ASSETS
Goodwill Brands Other intangible assets Total
Group €m €m €m €m
Cost
At 28 February 2023 598.6 321.1 46.3 966.0
Additions - - 1.9 1.9
Impairment of assets held for sale (Note 3) (3.3)) - - (3.3)
Translation adjustment 3.7 2.5 0.4 6.6
At 29 February 2024 599.0 323.6 48.6 971.2
Additions 1.2 0.6 1.9 3.7
Translation adjustment 5.9 3.8 0.5 10.2
At 28 February 2025 606.1 328.0 51.0 985.1
Amortisation and impairment
At 28 February 2023 76.2 214.6 31.1 321.9
Impairment charge for the year 125.0 - - 125.0
Amortisation charge for the year - - 2.4 2.4
At 29 February 2024 201.2 214.6 33.5 449.3
Amortisation charge for the year - - 2.8 2.8
At 28 February 2025 201.2 214.6 36.3 452.1
Net book value
At 28 February 2025 404.9 113.4 14.7 533.0
At 29 February 2024 397.8 109.0 15.1 521.9
Goodwill related to the following assets and groups of cash generating units
(CGUs):
Group of cash generating units Operating segment 2025 2024
€m €m
Cider Branded 187.2 186.3
Tennents Branded 65.2 62.9
Ireland Distribution 20.9 20.9
MCB Distribution 109.7 105.8
Export Distribution 21.9 21.9
Total 404.9 397.8
Following a change in executive leadership and realignment of business
strategy during the year, the Group changed its operating segments from a
geographic basis to one based on business operations in the current year as
set out in Note 2. The change its operating segments and separately monitor
the segmental results between Branded and Distribution with effect from 1
March 2024, also impacted the groups of cash generating units at which
goodwill is monitored for internal management purposes.
As a result, the previously reported amounts of goodwill attributed to the
Groups of CGUs identified under IAS 36 at 29 February 2024 needed to be
allocated to the newly identified Groups of CGUs at 1 March 2024 in accordance
with IAS 36.
Where a direct relationship between previously reported Group of CGUs and one
of the new Groups of CGUs existed, the previously reported amount of goodwill
was allocated to the new Group of CGUs. Where no such direct relationship
existed, such as in the case of the previously reported Ireland and Scotland
CGUs, the goodwill relating to the previously reported Group of CGUs was
allocated to the new Group of CGUs based on the relative values of the
businesses within each former Group of CGUs, determined using the value-in-use
calculations performed as part of the Group's goodwill impairment review
performed at 29 February 2024.
The table below shows the impact of the reallocation of goodwill between that
attributed to the CGUs identified under IAS 36 at 29 February 2024 and the new
CGUs identified following the change:
Goodwill by Group of CGUs at 29/2/24 Goodwill by Group of CGUs at 1/3/24
As reported Cider Tennents Ireland Great Britain (Distribution) Export
€m (Branded) (Branded) (Distribution) €m (Distribution)
€m €m €m €m
Ireland 154.5 117.4 16.2 20.9 - -
Scotland 59.8 13.1 46.7 - - -
C&C Brands 55.8 55.8 - - - -
MCB 105.8 - - - 105.8 -
North America 9.1 - - - - 9.1
Export 12.8 - - - - 12.8
Total 397.8 186.3 62.9 20.9 105.8 21.9
10. PROPERTY, PLANT AND EQUIPMENT
Freehold land and buildings Plant and machinery Motor vehicles and other equipment Total
Group €m €m €m €m
Cost or valuation
At 28 February 2023 93.0 220.7 63.3 377.0
Translation adjustment 1.4 1.8 0.6 3.8
Additions 3.4 4.6 5.8 13.8
Assets held for sale (3.2) (6.8) - (10.0)
Disposals - (2.0) (0.2) (2.2)
Impairment - - (0.4) (0.4)
Revaluation of property, plant and machinery 1.0 (0.4) - 0.6
At 29 February 2024 95.6 217.9 69.1 382.6
Translation adjustment 2.0 3.0 1.3 6.3
Additions 3.5 8.7 4.3 16.5
Acquisition of subsidiary (Note 14) - 1.8 - 1.8
Assets held for sale - (3.1) - (3.1)
Disposals (0.9) (0.7) (1.6) (3.2)
Impairment (1.8) - - (1.8)
Revaluation of property, plant and machinery 2.7 (0.7) - 2.0
At 28 February 2025 101.1 226.9 73.1 401.1
Accumulated depreciation
At 28 February 2023 21.9 154.4 53.1 229.4
Translation adjustment 0.4 0.9 0.5 1.8
Assets held for sale (0.8) (4.0) - (4.8)
Disposals - (1.9) - (1.9)
Charge for the year 1.5 6.1 2.8 10.4
At 29 February 2024 23.0 155.5 56.4 234.9
Translation adjustment 0.4 1.7 0.9 3.0
Assets held for sale - (2.0) - (2.0)
Disposals (1.6) (0.7) (0.9) (3.2)
Charge for the year 2.9 4.5 4.2 11.6
At 28 February 2025 24.7 159.0 60.6 244.3
Net book value
At 28 February 2025 76.4 67.9 12.5 156.8
At 29 February 2024 72.6 62.4 12.7 147.7
Valuation of freehold land and buildings and plant and machinery
In line with previous years, the Group engaged the Real Estate and Capital
Equipment Valuation team of PricewaterhouseCoopers LLP to value the Group's
freehold land and buildings and plant and machinery at the Group's
manufacturing facilities in Clonmel (Tipperary) and Wellpark (Glasgow). The
valuers are members of the Royal Institution of Chartered Surveyors with
experience of undertaking property, plant and equipment valuations on a global
basis.
For specialised assets, comprising the production facilities at Clonmel and
Wellpark Brewery, the Depreciated Replacement Cost approach was applied to
value land and buildings. The Depreciated Replacement Cost approach was also
used to derive fair value for the plant and machinery at the Group's
manufacturing facilities given their specialised nature.
The result of these external valuations was an increase in the value to
freehold land and buildings of €2.7m (FY2024: €1.0m) of which €0.9m
(FY2024: €0.5m) was credited to the Income Statement and €1.8m (FY2024:
€0.5m) was credited to Other Comprehensive Income. Additionally, there was a
decrease in the value of plant and machinery of €0.7m (FY2024: €0.4m) of
which €0.7m (FY2024: €0.1m) was charged to the Income Statement and €Nil
(FY2024: €0.3m) was charged to Other Comprehensive Income.
For all other items of land and buildings and plant and machinery the Group
completed an internal assessment of the appropriateness of their carrying
value. Assisted by a market overview provided by the valuation team from
PricewaterhouseCoopers LLP, with respect to the geographic locations of the
Group's assets, the Group concluded that the carrying value was appropriate at
28 February 2025 and no adjustment was recorded in this regard.
Additionally, the Group recognised an impairment charge of €1.8m in respect
of assets previously capitalised as part of the Newbridge depot in Edinburgh.
Operations at this location were discontinued in June 2024 as part of the
continued rationalisation of the Group's depot and distribution operations and
these assets are considered to be fully impaired at 28 February 2025. This
charge has been recognised in exceptional costs during the period (see Note 3
for further details).
Right-of-use assets
Freehold land and buildings Plant and machinery Motor vehicles and other equipment Total
Group €m €m €m €m
Net carrying amount:
At 1 March 2023 31.5 2.5 33.4 67.4
Translation adjustment 1.0 0.1 0.7 1.8
Additions 29.2 4.6 17.7 51.5
Remeasurement 0.6 - (0.4) 0.2
Depreciation charge for the year (7.4) (1.9) (11.6) (20.9)
At 29 February 2024 54.9 5.3 39.8 100.0
Translation adjustment 2.4 0.4 0.9 3.7
Additions 8.1 2.7 11.5 22.3
Disposals (3.0) - - (3.0)
Remeasurement 17.6 - - 17.6
Depreciation charge for the year (7.3) (5.3) (7.9) (20.5)
Impairment (2.5) - - (2.5)
At 28 February 2025 70.2 3.1 44.3 117.6
The impairment charge relates to the Group's Newbridge distribution depot in
Edinburgh (€1.2m) and the Regents Park Road office in London (€1.3m) and
has been recognised in accordance with IAS 36.
11. OTHER FINANCIAL LIABILITIES
2025 2024
Group €m €m
Contractual financial liabilities:
At 1 March 6.8 -
Translation adjustment 0.2 -
Charged during the year - 6.8
Utilised during the year (1.0) -
Unwinding of discount on provisions 0.2 -
At end of year 6.2 6.8
Disclosure of financial liabilities
2025 2024
Group €m €m
Current liabilities 1.0 1.0
Non-current liabilities 5.2 5.8
6.2 6.8
During the year ended 29 February 2024, the Group made an offer to settle some
of its onerous contract obligations with its bittersweet apple suppliers (see
Note 12) and accordingly €6.8m was reclassified as a financial liability and
initially recognised at fair value based on the present value of the future
payments, in accordance with IFRS 9. During FY2025, a total of €1.4m has
been paid to the suppliers comprising €1.0m in respect of financial
liabilities and €0.4m in respect of onerous contracts (see Note 12).
Key assumption used in calculating the value of the other financial
liabilities:
The calculation of the value of other financial liabilities is most sensitive
to the assumption of the discount rate, which is the risk-free rate based on
the UK bond yield curve as at the year-end date. The average discount rate
used was 4.4% (FY2024: 4.1%) and a 1% change in the discount rate would give
rise to a €0.2m (FY2024: €0.3m) change in the value of the other financial
liabilities.
12. PROVISIONS
Dilapidations Onerous contracts Other Total
Group €m €m €m €m
At 1 March 2023 5.4 12.2 4.9 22.5
Translation adjustment (0.1) - - (0.1)
Charged during the year 0.9 0.4 1.3 2.6
Released during the year (0.7) - - (0.7)
Reclassified to financial liabilities - (6.8) - (6.8)
Utilised during the year (0.2) (2.4) (4.8) (7.4)
At 29 February 2024 5.3 3.4 1.4 10.1
Translation adjustment 0.2 0.1 0.1 0.4
Charged during the year 3.5 2.2 0.9 6.6
Released during the year (0.7) (0.1) (0.4) (1.2)
Utilised during the year (0.8) (0.4) (0.3) (1.5)
Unwinding of discount on provisions 0.1 0.1 - 0.2
At 28 February 2025 7.6 5.3 1.7 14.6
Disclosure of provisions
2025 2024
Group €m €m
Current liabilities 7.6 2.2
Non-current liabilities 7.0 7.9
.7 14.6 10.1
Dilapidations
During the year ended 28 February 2025, the Group has performed independent
assessments of the dilapidations liabilities across its leased properties
portfolio and concluded that an additional provision of €3.5m (FY2024:
€0.9m) was required. Of this amount, €2.2m was for leased depots in
England (FY2024: €0.4m), including €1.0m for the Shepton Mallett site in
Somerset. A further €1.3m was in respect of leased depots in Scotland
(FY2024: €0.5m) and), including €0.5m for the Dixon Blazes site in
Glasgow. As at 28 February 2025, the dilapidation liabilities relate solely to
leased properties (FY2024: €5.0m for leased depots and €0.3m for leased
vehicles).
Onerous Contracts
Included within Onerous contracts are the Group's future obligations with its
bittersweet apple suppliers under existing long-term contractual arrangements,
recognised at present value as the Group does not expect to receive any
economic benefit from the remaining duration of the contracts in accordance
with IAS 37: Provisions, Contingent Liabilities and Contingent Assets. During
the year ended 29 February 2024, the Group made an offer to settle these
contracts and accordingly €6.8m was reclassified as a financial liability
and initially recognised at fair value based on the present value of the
future payments, in accordance with IFRS 9, with the balance of €3.4m
classified as an onerous contract since no agreement has yet been reached with
the remaining suppliers. During FY2025, a total of €1.4m has been paid to
the suppliers comprising €1.0m in respect of financial liabilities and
€0.4m in respect of onerous contracts.
These contracts with bittersweet apple suppliers have an average duration of 9
years (FY2024: 10 years) remaining. Annual payments will be made over the life
of the contracts. There are no significant variability or sensitivities to
note, there will be fluctuation in quantities depending on harvests, but the
fluctuation will be minimal, reducing over time as contracted acres fall out
of contract.
Also included in Onerous contracts are the Group's future obligations with its
lessors on rental properties in England and Scotland, of which €2.2m has
been charged during the year (FY2024: €nil). Of this amount, €1.5m was in
respect of the Group's Regents Park Road office in London which was closed in
April 2025 and €0.4m was in respect of the Newbridge depot in Edinburgh,
which was closed in June 2024.
Other
During the year ended 28 February 2025, the Group charged €0.9m (FY2024:
€1.3m) of other provisions in respect of anticipated costs associated with
legal and insurance claims. As at 28 February 2025, the balance of €1.7m
(FY2024: €1.4m) relates largely to these and other similar costs that the
Group expects to incur over an extended period, none of which are individually
material.
Key assumption used in calculating the value of the provisions:
The calculation of the value of provisions is most sensitive to the assumption
of the discount rate, which is the risk-free rate based on the UK bond yield
curve as at the year end date. The average discount rate used was 4.4%
(FY2024: 4.1%) and a 1% change in the discount rate would give rise to a
€0.1m (FY2024: €0.1m) change in the value of the provisions.
13. ANALYSIS OF NET DEBT
Interest bearing loans and borrowings* Cash and cash equivalents Net debt excluding leases Lease liabilities Net debt including leases
Group €m €m €m €m €m
1 March 2023 (194.2) 115.3 (78.9) (76.6) (155.5)
Translation adjustment (1.2) 1.9 0.7 (1.9) (1.2)
Additions, disposals and remeasurements - - - (51.8) (51.8)
Net cash flow (21.6) 42.9 21.3 25.0 46.3
Non-cash changes (1.0) - (1.0) (4.8) (5.8)
29 February 2024 (218.0) 160.1 (57.9) (110.1) (168.0)
Translation adjustment (1.7) 5.0 3.3 (4.2) (0.9)
Additions, disposals and remeasurements 0.5 - 0.5 (35.6) (35.1)
Net cash flow (5.0) (21.1) (26.1) 25.5 (0.6)
Non-cash changes (0.7) - (0.7) (7.0) (7.7)
28 February 2025 (224.9) 144.0 (80.9) (131.4) (212.3)
* Interest bearing loans and borrowings at 28 February 2025 are net of
unamortised issue costs of €3.6m (FY2024: €3.8m).
14. ACQUISITIONS AND DISPOSAL
Acquisition
On n 27 February 2025, the Group acquired an additional 51% interest in
Drygate Brewing Company Limited ("Drygate Brewing"), having previously held a
49% interest. Drygate Brewing was previously accounted for as a joint venture
(see Note 13). The primary reason for acquiring the business was to enhance
the Group's range of fast-growing, premium and craft beers. The results of the
acquired
entity will be consolidated in the Group's income statement from 1 March 2025.
The total consideration paid by the Group for Drygate Brewing was €0.9m,
comprising €0.4m for the Group's existing 49% equity interest and €0.5m
for the additional 51% equity interest. A gain of €0.4m has been recognised
in Net loss on Subsidiary disposal on the remeasurement of the Group's 49%
existing investment in joint venture entity Drygate Brewing.
The acquisition date fair values of the assets and liabilities acquired are as
set out in the table below. These values are provisional and maybe subject to
change following finalisation of the purchase price allocation ("PPA")
procedures.
€m
Identifiable intangible assets: Acquired brands 0.6
Property, plant and equipment 1.8
Inventories 0.1
Trade and other receivables 0.8
Deferred tax liabilities (0.3)
Trade and other payables (3.3)
Net identifiable assets acquired (0.3)
Goodwill (Note 9) 1.2
Total consideration* 0.9
* The total consideration paid by the Group for Drygate Brewing was €0.9m,
comprising €0.4m for the Group's existing 49% equity interest and €0.5m
for the additional 51% equity interest. This was a non cash transaction.
The fair value of trade and other receivables and other classes of assets and
their gross contractual amount are the same.
The goodwill arising on acquisition is principally related to the synergies
expected to arise following the integration of the Drygate business including
operational cost rationalisation and revenue synergies driven by the Group's
large premium brands portfolio and wide distribution network.
Disposals
Following a reassessment of the Group's supply and logistics operations for
raw materials inputs, the Group classified its Portuguese businesses, which
produce fruit concentrates, as a disposal group held for sale as at 29
February 2024. The sale agreement was signed on 18 July 2024 and was approved
by the Portuguese Competition Authority on 4 October 2024. The transaction
completed on 6 November 2024 and a loss on disposal of €0.9m was recognised
for the year ended 28 February 2025 as set out below
2025
€m
Property, plant and equipment (4.7)
Inventories (0.3)
Trade and other receivables (2.9)
Cash and cash equivalents (0.4)
Trade and other payables 4.8
Current income tax liabilities 0.2
Deferred tax liabilities 0.2
Net assets disposed (3.1)
Costs of disposal (0.1)
Cash proceeds 2.3
Loss on disposal (0.9)
On 4(th) February 2025 the Group also completed its disposal of its 50%
shareholding in Beck & Scott (Services) Ltd for proceeds of €0.4m. The
gain on disposal was €0.4m.
15. SUBSEQUENT EVENTS
Extended Producer Responsibility (EPR) Regulations - UK
The UK's Producer Responsibility Obligations (Packaging and Packaging Waste)
Regulations 2024 came into force on 1 January 2025, with the first assessment
year commencing 1 April 2025. These regulations introduce waste disposal fees
for large producers, based on packaging volumes placed on the UK market in the
preceding calendar year.
As the assessment date to determine whether the Group meets the definition of
a "Producer" under the EPR regime falls on 1 April 2025, no provision has been
recognised in these financial statements. However, the Group has since met the
qualifying thresholds and is expected to incur disposal fees in future
reporting periods. The Group is monitoring this evolving area and will
consider appropriate recognition and disclosure in future periods once
sufficient data and cost estimates are available.
US Tariff Announcement
On 2 April 2025, the US administration announced a 10% tariff on all imported
goods, effective from 5 April 2025, along with additional tariffs of up to 50%
on selected UK and EU goods - including alcoholic beverages and soft drinks -
effective from 8 April 2025. A temporary 90-day suspension of the additional
tariffs (excluding China) was introduced on 9 April 2025. The Group is
reviewing the impact of these measures on its exports to the US and currently
does not expect any impact related to this to be material.
CEO Transition
Following a short transition period after the appointment of Roger White as
CEO on 20 January 2025, Ralph Findlay stepped down from his joint role and
reverted to his position as Non-Executive Chair with effect from 1 March 2025.
Share Buyback Programme
The Group has commenced its previously announced share buyback programme and,
between 1 May 2025 and 20 May 2025, repurchased 1,246,989 shares on the open
market at an average price of 175.9 cent per share. The total cost of the
buyback during this period amounted to €2.2m.
No other material post-balance sheet events requiring disclosure have been
identified.
1 (#_ftnref1) Hospitality Market Monitor - CGA and AlixPartners
(( 2 (#_ftnref2) )) CGA OPM, Total GB, 52 w/e 25.01.25
(( 3 (#_ftnref3) )) CGA - ROI LAD Performance Update
4 (#_ftnref4) Irish Tourism Industry Confederation
(( 5 (#_ftnref5) )) NIQ Total Off License Ireland - 52we
6 (#_ftnref6) CGA OPM 25.01.2025
7 (#_ftnref7) IRI Off-Trade data platform 25.01.2025
8 (#_ftnref8) CGA OPM, Republic of Ireland, 25.01.25
9 (#_ftnref9) CGA, OPM, Data 22.02.25; C&C GB (Direct Supply), Data to
22.02.25
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