C&C Group profits improve despite lower revenue
By Josh White
Date: Tuesday 28 Oct 2025
(Sharecast News) - C&C Group reported higher first-half profit and margins on Tuesday, as strong cash generation and tight cost control helped offset lower revenues caused by the transfer of Budweiser Brewing Group distribution in Ireland and softer market conditions.
The FTSE 250 Dublin-based drinks group, whose brands include Tennent's, Bulmers and Magners, said it remained on track to meet full-year earnings expectations.
For the six months ended 31 August, net revenue fell 4% to €825.7m, reflecting the previously-announced loss of Budweiser Brewing Group volumes in the Republic of Ireland and weaker wine and spirits sales among national customers.
Adjusted EBITDA rose 2% to €58.1m, while operating profit increased 4% to €41.9m, lifting the operating margin by 0.4 percentage points to 5.1%.
Adjusted profit before tax rose 12% to €32.1m, and adjusted earnings per share climbed 14% to 6.7 cents.
The group said it generated underlying free cashflow of €41.7m, up 115% year-on-year, and maintained leverage at 1.1 times EBITDA.
It also raised its interim dividend by 4% to 2.08 cents per share and confirmed that a €15m share buyback completed in September formed part of its ongoing €150m capital return programme to shareholders through 2027.
"We have delivered a solid first-half performance against a challenging market backdrop," said chief executive Roger White.
"We continue to invest in initiatives to support improved business performance - building brands, delivering service, range and value to customers and consumers.
"In addition, we have made good initial progress in our programme to simplify and improve our core business processes.
"We believe we are well prepared for the all-important festive trading period, and whilst we expect challenging economic conditions to persist, we remain committed to the delivery of our full-year earnings targets."
Branded revenue declined 1.3% to €170m, but operating profit rose 2.7% to €26.7m as margins improved to 15.7%.
Tennent's outperformed the wider lager market in Scotland, growing its on-trade market share by 0.6 percentage points, while Bulmers' revenues rose 6.6% amid stronger summer cider sales and the launch of Bulmers Zero.
Magners showed progress in the UK off-trade following renewed marketing efforts, though on-trade sales remain under pressure.
Distribution revenue fell 4.8% to €655.7m, mainly due to the Budweiser transfer, but operating profit grew 6.3% to €15.2m as margins increased to 2.3%.
The group highlighted efficiency gains and robust service levels, with more than 98% of deliveries on time and 96% in full.
C&C said it is advancing its 'Simply Better Growth' programme to enhance efficiency, strengthen data systems, and drive profitability across both its branded and wholesale operations.
It had also committed to environmental investments at its Wellpark Brewery in Glasgow, including an electric boiler system and a new dealcoholisation facility.
The board noted that chief financial and transformation officer Andrew Andrea would step down by March 2026 to become CFO of Domino's Pizza Group, with a search underway for his successor.
C&C said it expected "solid trading" in the second half, with plans in place for the key Christmas period and overall cost projections unchanged.
The group said it was confident in meeting its full-year guidance, adding that further details on its simplification and efficiency plans will be presented in May 2026.
At 1020 GMT, shares in C&C Group were down 3.53% at 131.2p.
Reporting by Josh White for Sharecast.com.
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