C&C Group Reports Mixed HY2026 Results with Profit Growth and Dividend Increase

C&C Group HY2026: profit up, margins firmer, dividend lifted

C&C Group has posted a steady set of half-year numbers for the six months to 31 August 2025. Revenue dipped as expected after the Budweiser Brewing Group contract moved in the Republic of Ireland, but profits, margins and cashflow all moved the right way. The interim dividend is up and the share buyback continues.

Headline results that matter for investors

Metric	HY2026	HY2025	Change
Net revenue	€825.7m	€861.4m	-4%
Adjusted EBITDA	€58.1m	€57.0m	+2%
Operating profit (pre-exceptional)	€41.9m	€40.3m	+4%
Operating margin	5.1%	4.7%	+0.4 ppts
Adjusted PBT	€32.1m	€28.6m	+12%
Adjusted basic EPS	6.7c	5.9c	+14%
Basic EPS	5.4c	3.3c	+64%
Underlying free cashflow	€41.7m	€19.4m	+115%
Leverage (net debt/EBITDA)	1.1x	1.1x	–

Revenue down, but the reason is known

Net revenue fell 4% to €825.7m, mainly because C&C no longer distributes Budweiser Brewing Group brands in the Republic of Ireland following the previously flagged change on 1 January 2025. There were also softer volumes with some national customers, particularly in wine and spirits, reflecting wider market trends.

Importantly, profit moved up despite the top-line headwind. Operating profit rose 4% to €41.9m and operating margin improved to 5.1% (+0.4 percentage points). That tells you cost control and mix are working.

Cash generation and balance sheet: solid and steady

Underlying free cashflow jumped to €41.7m (from €19.4m). Working capital timing helped, but this is still a strong showing with 72% free cashflow conversion. Net debt excluding leases was €91.5m and leverage stayed at 1.1x, comfortably within covenants. Liquidity stood at €356.6m with bank facilities out to 2030, so no near-term refinancing worries.

Dividend and buyback: returning cash to shareholders

The interim dividend is up 4% to 2.08c per share, payable on 12 December 2025 to holders on 14 November 2025. The €150m capital return plan remains on track with another €15m of buybacks completed in September. Including this dividend, cumulative returns reach €92m.

Branded performance: Tennent’s and Bulmers do the heavy lifting

Branded revenue slipped 1.3% to €170.0m, but operating profit grew 2.7% to €26.7m, lifting margin to 15.7% (+0.6 ppts). The step-up reflects tight cost control and exiting low-margin contract manufacturing.

• Tennent’s: net revenue up 1.4% with price mix offsetting a 2.8% volume decline. Tennent’s gained 0.6 percentage points of On-Trade lager share in the latest 28 weeks, despite overall beer volumes in Scotland falling 2.7%.
• Bulmers: net revenue up 6.6% helped by a decent Irish summer. Cider volumes grew in both On-Trade and Off-Trade, and Bulmers gained Off-Trade share while holding On-Trade share. Bulmers Zero launched with positive initial volumes.
• Magners (GB): early days in the relaunch. Off-Trade momentum is encouraging with new listings and better rate of sale, but On-Trade performance lagged and overall volumes were down in the period.
• Premium portfolio: Menabrea and Outcider stood out, with Outcider now the third largest On-Trade cider brand in Northern Ireland.

Distribution: margins improving despite lower revenue

Distribution revenue fell 4.8% to €655.7m, reflecting the BBG transition in Ireland and softer volumes in the UK with large national accounts in wine and spirits. Operating profit increased 6.3% to €15.2m and margin edged up to 2.3% (+0.2 ppts) as efficiency measures bedded in.

• Great Britain Distribution: net revenue -1.1% with volumes -1.4%. On-Trade volumes grew 2.8% while Off-Trade declined, notably in supermarket own label. Share of GB On-Trade volume rose 0.9 percentage points on a MAT basis.
• Ireland Distribution: net revenue -29.6% and volumes -38.3%, primarily due to the BBG distribution transfer.
• Service levels: still strong at over 98% on time and over 96% in full – a competitive edge in a choppy market.

Market context: beer and cider keep winning share

In the UK On-Trade, beer and cider are taking share as consumers favour longer, better value serves. Beer value share rose by 0.8 percentage points to 45.4%, with stout the standout – up 17% year on year. Wine and spirits ceded share, with gin notably weaker. This backdrop plays to C&C’s strengths, but variability in footfall and shorter opening hours are still challenges for hospitality operators.

Strategy and operations: simplifying to grow

C&C is pushing a “Simply Better Growth” programme to tighten financial controls, enhance data and trading tools, and drive logistics and pricing efficiency. Investments include a new data integration platform, accounting reconciliation tools, and operational upgrades. On sustainability, the Group has committed to an e-boiler at Wellpark Brewery and a state-of-the-art dealcoholisation facility.

Management change: CFO succession in motion

Andrew Andrea, Chief Financial and Transformation Officer, will step down no later than 13 March 2026 to join Domino’s Pizza Group. The external search for a successor is underway. He remains in post through the financial year, which should help continuity.

Outlook maintained heading into peak trading

Trading is in line and full-year earnings expectations are maintained. Cost projections are broadly unchanged, with a small increase in IFRS 16 depreciation (€1m) offset by lower IFRS 16 interest. No major change is expected in the FY2027 inflation backdrop at this stage.

My take: steady progress with a few watch-outs

• Positives: margin expansion in both segments, stronger cash generation, and continued shareholder returns. Tennent’s and Bulmers are carrying the brand performance, and Distribution is holding service standards while nudging margins up.
• Negatives: top-line drag from the BBG transition, Magners still rebuilding in GB On-Trade, and a tough hospitality market for wines and spirits. CFO transition is a mild risk to monitor.
• Why it matters: this is a cash-generative, dividend- and buyback-paying business that is simplifying operations while leaning into categories gaining share. If Magners’ turnaround in GB On-Trade gains traction and Christmas trading lands well, the mix should improve further.

What to watch next

• Peak season performance over Christmas in both Branded and Distribution.
• Magners relaunch progress in GB On-Trade versus encouraging Off-Trade momentum.
• Further margin gains from the “Simply Better Growth” programme.
• Cash conversion and leverage staying around 1.1x while buybacks continue.
• CFO appointment and any refinements to the operating model ahead of the May 2026 strategy update.