C&C Group LON:CCR, the owner of Tennent’s lager and Bulmers cider, reported a modest rise in profit for the first half of its financial year, supported by tighter cost controls and higher margins, even as revenues fell amid a weaker drinks market in the UK and Ireland.
For the six months to 31 August 2025, the brewer and drinks distributor said operating profit rose 4 per cent year on year to €41.9mn, while adjusted earnings before interest, tax, depreciation and amortisation increased 2 per cent to €58.1mn.
Group operating margin improved by 0.4 percentage points to 5.1 per cent, with gains across both its branded and wholesale arms.
Revenues, however, slipped 4 per cent to €826mn, reflecting the transfer of Budweiser Brewing Group distribution in the Republic of Ireland earlier this year, as well as softer trading in wine and spirits categories. C&C maintained a strong balance sheet, with net debt of €91.5mn and leverage steady at 1.1 times EBITDA.
C&C remains strongly cash generative
The group, which distributes drinks through its Matthew Clark, Bibendum and Tennent’s wholesale businesses, said it generated €41.7mn in underlying free cash flow and remained “strongly cash generative”. An interim dividend of 2.08 cents per share was declared, up 4 per cent, and the company confirmed it was on track to return €150mn to shareholders over three years. A €15mn tranche of share buybacks was completed in September.
Roger White, C&C’s chief executive, said the company had delivered “a solid first-half performance against a challenging market backdrop”. He added that C&C had made progress in “simplifying and improving” its core operations while investing in its key brands. “We believe we are well prepared for the all-important festive trading period,” White said, adding that full-year earnings guidance was unchanged.
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C&C’s branded division, which includes Tennent’s, Bulmers, and Magners, saw sales dip 1.3 per cent to €170mn. The unit’s operating profit increased 2.7 per cent to €26.7mn, aided by the exit of low-margin contract manufacturing. Tennent’s, Scotland’s leading lager, grew market share by 0.6 percentage points and increased revenues by 1.4 per cent, offsetting a decline in volumes. The company launched new products including Tennent’s Bavarian Pilsner and a reformulated Tennent’s Zero.
Subdued sales in cider
Bulmers’ net revenues climbed 6.6 per cent, buoyed by warmer summer weather and new product innovation such as Bulmers Zero. Magners, which C&C regained full control of earlier this year, showed early signs of recovery in the UK off-trade following new marketing campaigns, though on-trade sales remained subdued.
The group’s distribution business recorded a 4.8 per cent drop in revenue to €656mn, largely due to the Budweiser contract handover in Ireland. Despite this, operating profit rose 6.3 per cent to €15.2mn as the company benefited from efficiency gains and disciplined cost management.
C&C said it had launched its “Simply Better Growth” initiative aimed at improving financial and operational systems, alongside investments in logistics and sustainability. The group reaffirmed its carbon reduction targets and announced plans for an electric boiler at its Wellpark Brewery in Glasgow.
The company also confirmed that Andrew Andrea, its chief financial and transformation officer, will leave next year to join Domino’s Pizza Group, with a search for his successor under way.
C&C said current trading remained in line with expectations and that it was confident of meeting full-year profit targets despite ongoing economic headwinds across its key markets.
