C&C Group has reported an increase in profits in the first half of the financial year, even though the summer’s wet weather has impacted cider sales.
The Magners owner, C&C Group, disclosed a significant rise in operating profits by 29% to £33.5 million (€40.3 million) in the six months ending 31 August. Looking ahead, the company projects profits of £66.6 million (€80 million) for the full financial year 2025 and aims for £833.5 million (€100 million) by 2027.
Although there is an optimistic outlook for profits, C&C Group faced a downturn in sales during the first half of the year, recording a decline to £717.9 million (€861.4 million). This reduction is partly attributed to the sale of its non-core soft drinks business in Ireland.
The company experienced a notable decrease in its branded business sales, falling 9.1%, while Magners volumes dropped by 10%. According to the company, this decline is due to the wet summer and fans travelling abroad for the Euro 2024 games hosted in Germany, which affected local alcohol consumption.
Despite the challenging market conditions, C&C Group chair and interim chief executive, Ralph Findlay, expressed satisfaction with the earnings results that aligned with expectations for the first half of 2025. He emphasised the resilience and appeal of brands like Tennent’s and Bulmers, which gained market share, while Menabrea and Orchard Pig saw double-digit revenue growth. Findlay stated, ‘Despite unfavourable summer weather, our brands demonstrated inherent appeal and resilience.’
As the company moves into the busier Christmas and New Year trading period, there is a commitment to improving customer service, simplifying operations, and enhancing efficiency. Findlay highlighted the importance of maintaining excellent service and continuing to win customers.
In an organisational update, C&C Group is actively searching for a new CEO following the resignation of former chief executive Patrick McMahon in June. His departure was prompted by the discovery of multiple financial errors over previous years, necessitating significant adjustments to the group’s financial statements which involved multi-million-pound charges.
The company announced the reallocation of €7.6 million (£6.3 million) in operating profit from the second half to the first half of the 2024 fiscal year, reflecting the corrected accounting figures.
As C&C Group navigates financial challenges and leadership changes, it remains focused on performance growth and operational improvement in the face of market adversities.
