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.
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