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Investing.com -- Shares of C&C Group (LON:GCC) rose more than 1% Wednesday after the company reported fiscal year 2025 results in line with expectations, supported by improved distribution and brand execution despite weather-related volume declines.
Revenue for the year ended February was €1.67 billion, close to consensus estimates of €1.66 billion. Adjusted operating profit reached €77.1 million, matching company guidance and consensus.
Tennent’s in Scotland and Bulmers in Ireland both gained market share, driven by stronger marketing and execution, according to Barclays (LON:BARC).
However, volumes declined due to poor summer weather and, in Scotland, reduced consumption during the 2024 European Football Championship.
Magners began a brand investment push after C&C resumed direct distribution from Anheuser-Busch InBev (EBR:ABI) at the start of 2025.
Barclays said the initiative aims to rebuild awareness, though no specific volume data was provided.
The distribution business recovered from ERP disruptions in fiscal 2024, with profit margins rising to 2.3%, more than double the prior year.
While still below the 3.5% target, the segment also saw an 8% increase in customer numbers and a 1.3% gain in market share.
Input costs remained mostly stable during the year, but Barclays noted recent increases in aluminium and glass prices.
Sugar prices fell. Margins were revised down slightly in response to the higher cost of goods.
Net income was €45 million, and earnings per share were €0.12, in line with Barclays’ forecast and above the consensus of €0.11. Net debt stood at €213 million, with a net debt-to-EBITDA ratio of 1.9.
Barclays maintained its “overweight” rating and €180 price target. Barclays made minor adjustments to forecasts, citing higher corporate tax rates, but left EBIT projections above consensus.