C&C Reports Steady Earnings, Maintains Commitment to Shareholder Returns
DUBLIN - C&C Group plc, a leading player in the premium beverage market, today announced its interim financial results for the six months ending August 31, 2024. The company, which owns prominent brands such as Tennent's and Bulmers, reported that its earnings were in line with expectations and it was on track to meet its full-year projections.
Despite challenging market conditions and a disappointing summer season, C&C experienced a marginal decline of 3% in net revenue. This drop was primarily due to the sale of its non-core soft drinks business in Ireland and a decrease in contracted beer production and cider sales in Great Britain. However, the company saw a 2% increase in net revenue from its Matthew Clark & Bibendum distribution channels.
The group’s operating profit before exceptional items recorded a significant increase of 29% compared to the same period last year, rising by €9.1 million to €40.3 million. This improvement was attributed to ongoing efficiency initiatives across the company and also contributed to an enhanced operating margin of 4.7%.
C&C's core brands Tennent's and Bulmers gained market share in the retail sector, strengthening their market leadership positions. Additionally, the company’s premium brands, including Menabrea and Orchard Pig, achieved double-digit revenue growth. The group's distribution service levels remained high, with the number of customers for Matthew Clark & Bibendum increasing by 10% year-on-year in August.
Looking forward, C&C is confident in achieving an operating profit of €80 million for the fiscal year 2025 and has set a target of €100 million for the fiscal year 2027. The interim dividend has been increased by 6% compared to last year, reflecting the company's commitment to a progressive dividend policy. C&C also announced that it has already returned €38 million to shareholders as part of a three-year plan that anticipates a minimum distribution of €150 million.
The group recently appointed Feargal O'Rourke and Sanjay Nakra as Executive Board Members and is in the process of hiring a new CEO.
This financial update is based on press releases from C&C Group plc. The company continues to focus on enhancing its service offerings and streamlining its business operations as it approaches the critical holiday trading period.