C&C Group issues profits warning
C&C Group, which owns the Tennents lager and Bulmers and Magners cider brands, has issued a profits warning, triggering its share price to fall by 10%, reports Ron Emler.
The Dublin based company said that sales in November and December had been hit by “weak consumer confidence”.
With the UK comprising more than 80% of sales, C&C cited the November budget as a prime reason for needing to revise its forecasts.
“Our business performance was driven primarily by softer than anticipated demand in hospitality, alongside adverse product mix, as consumers continue to move away from the consumption of wine and spirits, in favour of beer, across the market,” the company said.
However, “the Christmas fortnight was in line with expectations, but in January the company has “seen continued softness of consumer demand in the market” and thus predicts that this will continue for the rest of its financial year.
Lower operating profits
It expects its adjusted operating profit when it publishes full-year figures in May to be in the range of €70m to €73m, reflecting the lower operating profits from distribution.
Despite management efforts to improve performance, the consumer backdrop remains strained due to the Budget measure and changing preferences.
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On that basis C&C anticipates that its FY27 profits will be much the same as this year’s FY26, as it expects to see current macroeconomic and consumer headwinds continue
That said, the group plans to return €150m to shareholders via a combination of dividends and share buybacks over the three fiscal years to 2027 remain intact, with €92m already returned.
Hunt for new CFO
Last September, db reported that C&C Group was looking for a new CFO following the departure of Andrew Andrea, who left to work for Domino’s Pizza.
Andrea is expected to remain in post until the end of the financial year, stepping down on or before 13 March 2026, and C&C has said the search for a new CFO is well underway. CEO Roger White commented: “The Board join me in thanking Andrew for his excellent contribution to C&C. Andrew joined the business during challenging times and has, through his experience and capabilities, played a significant role in the stabilisation and improvement of the business. Andrew will continue to be an important part of the leadership group until his planned departure early next year.”
2025 also saw the group invest a seven-figure sum into its Magners cider brand, pouring the cash into new television advertising campaign ‘Magertism’, which the company hoped would “build on strong nationwide awareness and the brand’s rich heritage”. While CEO White reported in the firm’s FY25 results that Magners had seen “initial off-trade gains” during the period, the cider brand still has a way to go to catch up with the group’s star performers Tennents and Bulmers, which had both “gained market share”.
“We see future growth opportunities for both,” said White.
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