Latest news with #C&CGroup
Irish Times
4 days ago
- Business
- Irish Times
How Bulmers owner's new chief plans to put the fizz back into former market darling
The first stock market outing of C&C Group's new chief executive, Roger White, in March had an all-too-familiar feel to it. Less than two months in the job, White presided over a warning in a trading update that the cider and beer maker's earnings for the year to the end of February were going to be 'modestly below' target. He also dropped the company's goal of reaching a €100 million operating profit in its 2027 financial year, saying it would be hit in the 'medium term' The overreaction by the stock market – with C&C's shares sliding almost 20 per cent in London – suggested a slump in confidence in a company that already lost almost 60 per cent its value over the previous five years amid a series of missteps, executive changes and disappointments. C&C has been buffeted over this period by Covid lockdowns and the need for a £151 million (€179.5 million) share sale; defeat in the US market as it accepted $20 million (€17.6 million) to get rid of a problem cider business that cost $305 million a decade earlier; inflation; and the botched initial implementation of a new warehousing software system at its UK wholesale unit. READ MORE Then, last June, it faced the ignominy of having to restate three years of accounts , resulting in a net charge of €5 million, after finding errors spanning inventory issues in its Bulmers facility in Clonmel to the accounting treatment of glassware. [ C&C shares plunge in March Opens in new window ] White, C&C's fifth chief executive in as many years, did not hold back this week when he unveiled its full-year results where operating profit rebounded 17 per cent to €77.1 million – about €3 million short of what the company had been guiding before the alert in March. While he said that the brand portfolio – including Bulmers, Tennents and Magners – had 'significant development and growth potential', some areas had 'been neglected'. 'Innovation has been somewhat absent and insight somewhat lacking,' White, who previously served for 22 years as chief executive of FTSE 250 drinks company AG Barr, told analysts on a call on Wednesday. 'Many of the historic issues experienced by C&C have been self-inflicted. Complex operating models, poor systems, and a lack of execution focus have dogged the business. We are determined to bring simplicity and executional focus to the business.' It is easy, of course, for a newcomer to pillory the past. Rebooting a group – which also includes a drinks supply business to hospitality sectors on both sides of the Irish Sea – that had lost its way is another thing. So, what are White's big ideas? For Tennents, Scotland's No 1 beer brand and C&C's biggest seller, he sees 'immediate opportunities' for zero- and low-alcohol versions that are being redeveloped. Its current offering has had mixed reviews. Bulmers, whose €63.5 million of sales last year was about half that of Tennents, will also be given a light makeover to 'revitalise the look and feel of the brand' – and a hard push in the 0.0 alcohol space. But White sees a big opportunity in Magners cider, a brand that carried the investment case when C&C was a market darling two decades ago. Magners is now a shadow of its heyday in the hot summer of 2006, when icy pints fuelled England fans as the three lions made it to the World Cup quarter-finals. C&C took back the sale and marketing of Magners in England and Wales in January – under chairman and caretaker chief executive Ralph Findlay – after eight years in the hands of Anheuser-Busch InBev. 'It's undoubtedly been a tough few years for the Magners brand,' said White. 'However, we now have a real opportunity to reinvigorate this brand, to bring it back to what it used to be. It's now back in our full control, both from a marketing perspective and from a sales execution perspective.' He cautioned, however, that 'the reinvigoration of Magners will take time and continued investment'. The Matthew Clark Bibendum (MCB) UK beer, wine, spirits and soft drinks distribution business – which C&C picked up at a deeply discounted price in a distressed sale in 2018 – has been through the wringer, losing customers as a result of a badly managed roll-out of a complex new warehousing software system a few years ago. White has first-hand experience of the problems, as AG Barr is a supplier to MCB. While MCB saw a recovery in customer numbers last year as it restored service levels, White says there is still work to do to improve the proposition for customers – including further technology investment. Shares in C&C have rallied by a third since the profit warning in March – including a gain of about 6 per cent posted this week alone. It leaves the stock trading broadly in line with the wider European beverages sector, relative to earnings forecasts, according to Goodbody Stockbrokers analyst Patrick Higgins. [ Solid year for C&C as drinks group remains resilient Opens in new window ] White certainly made the right noises this week. But some observers reckon investors will now hold out for delivery. Analysts, from Barclays to Shore Capital, now reckon it will be C&C's 2029 financial year before it reaches its €100 million operating profit target. Nothing added but time?
Yahoo
5 days ago
- Business
- Yahoo
C&C Group Full Year 2025 Earnings: EPS Misses Expectations
Revenue: €1.67b (flat on FY 2024). Net income: €13.6m (up from €113.5m loss in FY 2024). Profit margin: 0.8% (up from net loss in FY 2024). EPS: €0.035 (up from €0.29 loss in FY 2024). We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 58%. The primary driver behind last 12 months revenue was the Distribution segment contributing a total revenue of €1.37b (82% of total revenue). Notably, cost of sales worth €1.59b amounted to 95% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling €63.5m were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how CCR's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 1.8% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Beverage industry in the United Kingdom. Performance of the British Beverage industry. The company's shares are up 1.8% from a week ago. It's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with C&C Group, and understanding them should be part of your investment process. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mail
6 days ago
- Business
- Daily Mail
C&C Group profits grow despite wet summer hitting cider sales
C&C Group has enjoyed higher annual profits despite rainy weather dampening cider sales last summer. The Magners and Bulmers producer revealed its adjusted earnings before nasties increased by 18.3 per cent to €112million in the 12 months ending 28 February. Its pre-tax profits also totalled €19.6million, against a €111.6million loss in the prior year, when the firm took a €125million impairment charge related to difficult trading conditions in the UK cider market. Wet weather continued to impact cider consumption across the UK and Ireland over the summer of 2024. Consequently, the company's branded business saw volumes of Magners decline by 5 per cent and net sales of Bulmers fall by 2 per cent in Ireland during the year. In addition, volumes of Tennent's lager decreased by 6 per cent, which C&C blamed not just on bad weather but also on the predicted 200,000 Scottish fans travelling to Germany for the Euro 2024 football tournament. However, C&C's overall net revenue still jumped by 13 per cent to €1.67billion, partly thanks to rising customer levels in its Matthew Clark Bibendum distribution arm. Roger White, chief executive of C&C, remarked: 'The group has progressed on a number of fronts over the last year, despite the ongoing challenging macro and market backdrop.' White took over C&C at the start of 2025 following a two-decade spell running Irn-Bru manufacturer AG Barr. His predecessor, Patrick McMahon, stood down after just 13 months in charge owing to accounting errors the FTSE 250 firm made while he was its finance boss. White said trading so far this year had been 'encouraging' in both of its core divisions, supported by higher demand for long alcoholic drinks in on-trade venues. Having hedged a majority of its major cost lines for the current financial year, C&C is optimistic about attaining its full-year earnings forecasts. Retail and hospitality companies face significant cost headwinds over the next year due to tax and minimum wage hikes announced by Chancellor Rachel Reeves in last Autumn's Budget. From last month, the National Living Wage went up by 6.7 per cent to £12.21 per hour, while employers' National Insurance contributions increased to 15 per cent on annual salaries above £5,000, from 13.8 per cent on wages exceeding £9,100. Many trading groups and hospitality businesses have warned that the measures will lead to redundancies, reduced investment and venue closures. C&C Group shares were 1.4 per cent up at 157p on early Wednesday afternoon and have grown by around 7.5 per cent so far this year.
The Independent
6 days ago
- Business
- The Independent
Profits recover at Magners maker C&C Group
Beer and cider maker C&C Group has seen profits rebound after progressing with turnaround plans. The company, which makes Magners and Tennent's, saw shares lift higher on Wednesday as a result. C&C reported a group operating profit of 45.8 million euro (£38.5 million) for the year to February 28, recovering from a 84.4 million euro (£70.9 million) loss a year earlier. The group said this was driven by its renewed growth strategy, after criticism from some investors over its performance in recent years. Bosses said the company are 'focusing on the basics' as part of this, with plans for further investment in its core brands and by simplifying processes and making operations more efficient. C&C said its efficiency drive has seen it close, or start the process to close, five depots in order to streamline its distribution network. The group said it is also looking to simplify its corporate structure by heavily reducing the group's roughly 30 separate legal entities. It came as the company reported net revenues of 1.66 billion euro (£1.4 billion) for the past year. This represented a marginal improvement on the previous year, despite poor weather last summer weighing down on demand for cider. Roger White, who took over as boss of the firm earlier this year, was optimistic for the rest of the year amid increased investment. He said: 'Looking ahead, 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. 'We remain focused 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.'
Yahoo
6 days ago
- Business
- Yahoo
Profits recover at Magners maker C&C Group
Beer and cider maker C&C Group has seen profits rebound after progressing with turnaround plans. The company, which makes Magners and Tennent's, saw shares lift higher on Wednesday as a result. C&C reported a group operating profit of 45.8 million euro (£38.5 million) for the year to February 28, recovering from a 84.4 million euro (£70.9 million) loss a year earlier. The group said this was driven by its renewed growth strategy, after criticism from some investors over its performance in recent years. Bosses said the company are 'focusing on the basics' as part of this, with plans for further investment in its core brands and by simplifying processes and making operations more efficient. C&C said its efficiency drive has seen it close, or start the process to close, five depots in order to streamline its distribution network. The group said it is also looking to simplify its corporate structure by heavily reducing the group's roughly 30 separate legal entities. It came as the company reported net revenues of 1.66 billion euro (£1.4 billion) for the past year. This represented a marginal improvement on the previous year, despite poor weather last summer weighing down on demand for cider. Roger White, who took over as boss of the firm earlier this year, was optimistic for the rest of the year amid increased investment. He said: 'Looking ahead, 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. 'We remain focused 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.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
