C&C Group, the owner of prominent cider brands, experienced a notable increase in profits for the first half of 2024, despite a challenging summer season that adversely affected sales.
The company’s profits rose significantly, with underlying operating profits up by 29% to £33.5 million for the six months ending August 31. C&C Group projects reaching £66.6 million in profits for the full financial year 2025 and £833.5 million by 2027, demonstrating the company’s strong financial trajectory. However, the sales figures painted a more complex picture, with overall sales dropping to £717.9 million. This decline followed the strategic divestment of non-core soft drinks businesses in Ireland, reflecting the company’s focus on its core products.
Ralph Findlay, C&C Group’s Chair and interim Chief Executive, expressed satisfaction with the company’s performance, highlighting that Tennent’s and Bulmers brands have increased their market share despite the wet summer impacting cider consumption. Menabrea and Orchard Pig also achieved substantial revenue growth, illustrating the resilience and appeal of C&C Group’s portfolio.
The summer weather conditions were not the only challenge the company faced. The Euro 2024 football tournament in Germany led to a dip in alcohol consumption as fans travelled abroad. Regardless, Findlay maintains a forward-looking approach as the company prepares for the upcoming Christmas and New Year trading periods, emphasising improvements in customer service and operating efficiency.
Amidst this financial review, C&C Group is searching for a new CEO, following the resignation of Patrick McMahon. His departure came after financial discrepancies were discovered, requiring significant adjustments and restatements of past financial reports. These adjustments involved reallocating £6.3 million of operating profit from the second half to the first half of FY2024. This situation underscores the importance of accuracy in financial reporting for maintaining corporate integrity.
The performance of C&C Group in the first half of 2024 reflects a resilient business navigating external challenges and internal restructuring effectively. While weather and accounting issues posed significant obstacles, the company has demonstrated the ability to adapt and maintain its market position. As it moves forward, C&C Group aims to enhance service and efficiency, with high expectations for the busy festive season.
