C&C Group has said it expects full-year earnings to be “modestly below” expectations following “softer trading across the market in January and February”.
Underlying EBIT was expected to be between €76m-€78m (£64m-£66m), up from the €60m reported in the year prior but below the target of €80m previously guided for, the Magners owner said.
Shares in the group tanked by 16% on the back of the earnings miss when markets opened today.
“The macroeconomic environment and UK October budget have placed a degree of additional pressure on our hospitality customers and impacted consumer confidence more generally,” C&C noted in a short trading update this morning (13 March).
Russ Mould, investment director at AJ Bell, said that activist investor Engine Capital would not be happy with the performance after spending a year pushing for change in the business.
“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,” he added. “To now disappoint on trading is a massive blow to shareholders.”
Group revenues would be “in line with last year”, with growth from its distribution arm offset by the impact of disposing its soft drinks business in Ireland, the exit from low-margin contract brewing and “softer GB cider sales” during the summer, C&C said.
Operating margins, meanwhile, were expected to be ahead of FY2024 with positive movement in both its branded and distribution business.
Customer numbers had grown by 7% in the second half of the year across the Matthew Clark Bibendum distribution business, C&C added.
This, it said, reflected “further improved and consistently high service levels”.
Read more: Why soft drinks titan Roger White is a ‘significant coup’ for C&C Group
“Having joined the business in late January 2025, although it is still early days, I believe I have already gained an understanding of the business and the wider market dynamics,” said C&C CEO Roger White. “It is clear to me that C&C has a committed and capable team, alongside great brands and a passion for delivering for its customers. However there is much work to be done to fully realise the potential across the Group.
“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.”
Earnings in FY2026 would be “marginally ahead of FY2025” C&C predicted, highlighting the return of Magners to full management control as a reason for optimism in the year ahead.
No comments yet