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

• 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.