C&C Group has issued a profits warning as trading towards the end of 2025 fell below expectations as cash-conscious consumers cut down on drinking to save money.
The Tennent’s and Magners brewer blamed Rachel Reeves’ November Budget for hitting consumer confidence and hampering the group’s overall trading across November and early December.
Shares in C&C sank by 8.7% to 117.4p as markets in London opened this morning.
“Our business performance was driven primarily by softer than anticipated demand in hospitality, alongside adverse product mix, as consumers continue to move away from the consumption of wine and spirits, in favour of beer, across the market,” C&C said in a full-year trading update this morning.
“While the group continued to make strong progress in its key objectives around improving customer service, developing brand execution, innovation and operational efficiency, these actions were not sufficient to offset the combination of subdued market volumes, unfavourable category mix and competitive pricing dynamics across the market.”
However, trading across the Christmas fortnight was in line with the board’s forecasts, with softness in consumer demand returning in January.
C&C added it expected the difficult conditions to continue throughout the balance of its financial year.
As a result, adjusted operating profits are now expected to be in the range of €70m-€73m, reflecting lower operating profits in the distribution business.
C&C said its brands continued to “deliver well”, with Tennent’s and Bulmers doing well across the festive period.
It added FY27 profits would be similar to the current year as it exited less profitable business in the distribution channel, but the lag between revenue decrease and cost reduction initiatives was expected to lead to “some degree of short-term profit dilution”.
No comments yet