Latest news with #Magners
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
7 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.'
The Independent
13-03-2025
- Business
- The Independent
Magners-maker says economic climate and Budget squeezing consumer confidence
The maker of Magners cider and Jubel beer has blamed weaker summer sales and the autumn Budget putting pressure on consumer confidence for lower-than-expected yearly earnings. Shares in C&C plunged by nearly a fifth on Thursday. The Dublin-based brewer, which is listed on the London Stock Exchange, said it was being squeezed by 'well-documented challenges' facing hospitality businesses. Weaker cider sales in Britain during the important summer period partly offset growth for the group's distribution business, through which it supplies drinks across the UK and Ireland. C&C owns a swathe of brands including Tennent's and Bulmers, which it says are number one in Scotland and Ireland respectively, ciders Magners and Orchard Pig, and fast-growing flavoured beer Jubel. The Irish company also said the wider economic environment and the Government's autumn Budget plans had put more pressure on its customers and affected consumer confidence more generally. The Government said it avoided raising taxes for 'working people' in the Budget. But it did raise taxes for some businesses through a higher national insurance rate, alongside increasing the national minimum wage from April, which several large companies have said will be passed on to customers through price rises, or staff through job cuts. C&C is expecting to report underlying earnings before interest and tax of between 76 million euros and 78 million euros (£63.8 million – £65.5 million) for the year to the end of February, which it said was slightly below its target profit because of slower trading in January and February. It would nonetheless be higher than the 60 million euros (£50.4 million) made the year before. Looking ahead, C&C said it expects to see ongoing uncertainty for consumers alongside continued cost challenges for the hospitality sector, but that earnings should be slighter higher in the year ahead. Russ Mould, investment director at AJ Bell, said: 'Magners-owner C&C crashed after saying it wouldn't hit earnings targets, blaming a tough economic environment and a cautious consumer. 'Having made progress with reshaping the board, including the appointment of former AG Barr boss Roger White to lead the company, all the ducks were in a row to drive a turnaround of the business. 'To now disappoint on trading is a massive blow to shareholders.' Mr White, who became chief executive in January, said that 'whilst the market backdrop remains challenging, we are continuing to support our customers, invest in the business and have some exciting plans to implement this year'.
