C&C has returned to the black and significantly improved underlying profitability following turnaround efforts at the drinks group.
This morning’s annual results are the first for the company under the leadership of former AG Barr boss Roger White, who took the helm in January.
Adjusted EBITDA increased 19.5% to €112m in the year to 28 February, while operating profits registered growth of 28.5% to €77.1m.
The business improved margins as it made a host of supply chain efficiencies across production, distribution and warehousing operations.
As a result, C&C moved from a €111.6m loss in 2023/24 to pre-tax profits of €19.6m. However, the bottom line was reduced by exceptional charges of €36.3m, including restructuring costs as it closed sites and made staff redundant.
Revenues for the year remained flat at €1.7bn as growth in the distribution arm was offset by the disposal of the non-core soft drinks business in Ireland and a soft summer for cider in the UK last year.
Tennent’s and Bulmers achieved market share gains during the year, maintaining market-leading positions, while a Magners relaunch resulted in initial off-trade gains.
C&C called its performance in the year “resilient” after being plagued with challenges, including a botched IT upgrade and accounting irregularities.
“The group has progressed on a number of fronts over the last year, despite the ongoing challenging macro and market backdrop,” White said.
“Our two leading brands, Tennent’s and Bulmers, gained market share and we see future growth opportunities for both. Our premium brand performance is encouraging, benefiting from ongoing consumer appeal for premium beer and cider, which is driving growth in this segment.”
He added: “Looking ahead, year-to-date trading is encouraging. With the key summer trading period ahead, we are executing our plans for the year, supporting our customers, investing in innovation and brand-building, people, and systems, whilst continuing to simplify the business and control costs.
“We remain focused on building a solid platform from which we can maximise the potential of the group. We are developing plans to grow sustainably whilst delivering on our financial targets, creating increased long-term shareholder value.”
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