Shares in C&C drop as drinks owner warns of lower earnings 

C&C, which also owns Tennent's, Five Lamps beer and Tipperary Water, said the macroeconomic environment and UK October Budget placed a degree of additional pressure on its hospitality customers and impacted consumer confidence more generally. Claire Nash

Drinks group C&C said annual revenue is expected to be in line with last year while its earnings before interest and tax (EBIT) is forecasted to be moderately lower as a result of softer trading in the first two months of this year.

In an update posted on Thursday, the Bulmers owner said that while it saw growth in its distribution business, it was offset by the impact of the sale of its non-core business in Ireland, the exit of low-margin contract brewing volume and softer cider sales in the UK during the important summer period.

C&C, which also owns Tennent's, Five Lamps beer and Tipperary Water, said the macroeconomic environment and UK October Budget placed a degree of additional pressure on its hospitality customers and impacted consumer confidence more generally.

Shares in the company sank by about 25% in early trade in London following its trading update.

The group said that despite these headwinds, it has made good progress and expects to report underlying EBIT in the range of €76m - €78m.

It noted that although this is modestly below its target, it marks a significant recovery compared to the previous year's earnings of €60m.

The group's operating margins are expected to be ahead of 2024 with positive progress in both its branded and distribution businesses.

It also said customer numbers grew by 7% in the last six months of its financial year in its Matthew Clark Bibendum distribution business, reflecting further improved and consistently high service levels.

"We have invested in our brands and achieved market share value growth for Tennent's in both the on and off trade and for Bulmers in the ROI on trade," C&C said.

Looking ahead, the group said it expects to see continued uncertainty for consumers alongside the impact of the well-documented challenges of the hospitality sector.

"We expect earnings in FY2026 to be marginally ahead of FY2025, reflecting our ongoing investment in the business to enhance our growth potential," C&C said.

"The group remains well-positioned to navigate these challenging conditions and our previously stated objective to deliver €100m EBIT remains in place over the medium-term."

“Having joined the business in late January 2025, although it is still early days, I believe I have already gained an understanding of the business and the wider market dynamics," said CEO Roger White. 

"There is much work to be done to fully realise the potential across the Group. Whilst the market backdrop remains challenging, we are continuing to support our customers, invest in the business and have some exciting plans to implement this year which I look forward to updating you on further in May."