Operating profits at drinks group C&C fizz 28% higher
Drinks group C&C has reported higher profits and revenues for the year ended 28 February 2025 and said that current trading for the year ahead is encouraging.
C&C manufactures, markets and distributes branded beer, cider, wine, spirits and soft drinks across Ireland and the UK. Its brands include Bulmers and Magners cider as well as Tennent's and Five Lamps beer.
Its operating profit before exceptional items for the year jumped by 28.5% to £77.1m from £60m, while its net revenue edged up to £1.665 billion from £1.652 billion the previous year.
Adjusted profits before tax for the year rose to £55.9m from £38.8m, and C&C has proposed a final dividend of 4.13 cent, up 4% on the previous year.
C&C said it was seeing a "limited" tariff impact on trading and costs, adding that current trading was encouraging and it was making no change to the expected outturn for the financial year.
But it noted total employment costs in the UK will grow in the coming year due to the increase in the National Minimum Wage and employer National Insurance contributions announced by the UK government in its October 2024 Budget.
"The introduction of further legislative activity, such as the Extended Producer Responsibility Levy and the already introduced Deposit Return Scheme in Ireland, will cause further price inflation, as these costs and taxes are passed on to customers and consumers.
"Against this backdrop, the focus on prudent management of our cost base, alongside ongoing plans to simplify the business and improve operating efficiency, combined with continued strong customer service, remain our operating priorities," it added.
C&C said its Tennent's and Bulmers brands achieved market share gains during the year and maintained their market-leading positions. Its Magners brand relaunch is underway with initial Off-Trade gains, it added.
Roger White, C&C's group chief executive, said the group has progressed on a number of fronts over the last year, despite the ongoing challenging macro and market backdrop.
"Our two leading brands, Tennent's and Bulmers gained market share and we see future growth opportunities for both. Our Premium brand performance is encouraging, benefitting from ongoing consumer appeal for premium beer and cider which is driving growth in this segment," the CEO said.
"Within Distribution, Matthew Clark Bibendum continued to deliver positive momentum, achieving consistently improved service levels, growing its customer base by 8%," he added.
Mr White said that year to date trading is encouraging.
"With the key summer trading period ahead, we are executing our plans for the year, supporting our customers, investing in innovation and brand-building, people, and systems, whilst continuing to simplify the business and control costs, he said.
"We remain focussed on building a solid platform from which we can maximise the potential of the group. We are developing plans to grow sustainably whilst delivering on our financial targets, creating increased long-term shareholder value," he concluded.
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