REG - C&C Group Plc - Trading Update

C&CAnnouncement

13/03/2025 07:00

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RNS Number : 4372A  C&C Group Plc  13 March 2025

 

 

 

TRADING UPDATE FOR THE 12 MONTHS ENDED 28 FEBRUARY 2025

 

DELIVERY OF EARNINGS AND MARGIN PROGRESSION, ALONGSIDE CONTINUED STRONG CASH
GENERATION

 

13 March 2025 | C&C Group plc ('C&C' or the 'Group'), a premium drinks
company which manufactures, markets and distributes branded beer, cider, wine,
spirits and soft drinks across the UK and Ireland announces a trading update
for the twelve 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 Performance

Group revenues are expected to be in line with last year reflecting growth in
our Distribution business offset, as highlighted at the interim results, by
the impact of the disposal of our non-core soft drinks business in Ireland,
the strategic exit of low margin contract brewing volume and softer GB cider
sales during the important summer trading period.

The macroeconomic environment and UK October Budget have placed a degree of
additional pressure on our hospitality customers and impacted consumer
confidence more generally. Despite these headwinds, the Group has made good
progress and expects to report underlying EBIT in the range of €76m -
€78m, which although modestly below our target due to softer trading across
the market in January and February, reflects significant recovery versus the
prior year's earnings of €60m. Operating margins are expected to be ahead of
FY2024 with positive progress in both our Branded and Distribution businesses.
The Group has increased customer numbers growing 7% in the second half of
FY2025 in our Matthew Clark Bibendum distribution business, reflecting further
improved and consistently high service levels.  We have invested in our
brands and achieved market share value growth for Tennent's in both the on and
off trade and for Bulmers in the ROI on trade.

Cash generation has remained strong, with net debt:EBITDA at year-end 1.0x, in
line with our target, reflecting disciplined working capital management,
investment in the business, and further progress in our shareholder return
programme. The Group's balance sheet remains robust, providing flexibility to
support future growth initiatives and capital returns to shareholders.

We have distributed €51m, comprising dividend payments of €21m and share
buybacks of €30m. We intend to commence a further €15m share buyback
programme on 1 May 2025.

Current Outlook

Our key commercial objectives are to support our customers with
industry-leading service, choice and value, whilst continuing to delight
consumers with our range of leading brands. We have some exciting plans for
our brands coming in FY2026, including the relaunch of Magners as the brand is
now back under our full management control in the UK market.

Looking forward, we expect to see continued uncertainty for consumers
alongside the impact of the well documented challenges of the hospitality
sector. We remain confident in the longer-term and will further invest in our
customer proposition, brand innovation, systems and people.  This underpins
the Board's confidence in our ability to achieve sustainable, long-term
profitable growth. We expect earnings in FY2026 to be marginally ahead of
FY2025, reflecting our ongoing investment in the business to enhance our
growth potential.  The Group remains well-positioned to navigate these
challenging conditions and our previously stated objective to deliver €100m
EBIT remains in place over the medium-term.

Further details will be provided in the Group's full-year results announcement
on 28 May 2025.

 

Roger White, Chief Executive Officer, commented:

 

"Having joined the business in late January 2025, although it is still early
days, I believe I have already gained an understanding of the business and the
wider market dynamics. It is clear to me that C&C has a committed and
capable team, alongside great brands and a passion for delivering for its
customers.  However there is much work to be done to fully realise the
potential across the Group. Whilst the market backdrop remains challenging, we
are continuing to support our customers, invest in the business and have some
exciting plans to implement this year which I look forward to updating you on
further in May. I remain confident of the significant long-term opportunity
within the business and I am fully focussed on delivering increased
shareholder value."

 

 

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 / Amelia Thorn

Tel:   020 7457 2020

Email: CandCGeneral@instinctif.com (mailto:CandCGeneral@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:C&CGroup@fticonsulting.com)

 

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