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
Investors, Analysts & UK Media:
Instinctif Partners
Justine Warren / Tim Pearson /
Amelia Thorn
Tel: 020 7457
2020
Email: 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
