C&C Group shares fall as revenue dips despite profit forecast in line

Investing.com -- C&C Group (LON:GCC) shares tumbled 7.05% after the alcoholic beverage company reported first-half revenues 4% below last year, despite operating profit expectations meeting analyst forecasts.

The company expects underlying operating profit for the six months ended August 31 to range between €41.5-€42.0 million, slightly ahead of Bloomberg consensus estimates of €40.5 million. However, revenue performance fell short as the company continues to navigate the impact of transferring AB InBev Off Trade Beer distribution control in Ireland and its strategic exit from lower-margin business segments.

Matthew Clark Bibendum, the group’s distribution business, saw revenues slightly below last year, reflecting volume declines among national customers, particularly in wines and spirits categories, in line with broader market trends.

"Despite the challenging macroeconomic backdrop, we will continue to invest in the business to improve performance, support growth and ensure we deliver for all our customers and consumers," said Roger White, Chief Executive Officer.

The company’s core brands, Tennent’s and Bulmers, delivered solid performances with revenue growth in the period. C&C has begun efforts to revitalize the Magners UK brand after regaining control in January 2025, launching a new marketing campaign that has improved off-trade performance, though on-trade distribution gains remain challenging.

C&C reaffirmed its commitment to returning €150 million to shareholders through fiscal year 2027 via dividends and share buybacks. The company has completed its latest €15 million buyback tranche that began May 1, bringing total shareholder distributions to €84 million since the start of fiscal year 2025.

Despite the revenue challenges, management maintained its full-year operating profit guidance in line with market expectations, though cautioned about the important Christmas trading period ahead and ongoing macroeconomic headwinds.