C&C Group, owner of Magners, reports profit growth despite a wet summer hindering cider sales.
- The company’s underlying operating profits increased by 29% in the first half of the year.
- Sales volumes for Magners and branded products declined due to unfavorable weather and significant sporting events abroad.
- Despite sales drops, brands like Tennent’s and Bulmers increased their market share, showcasing resilience.
- C&C Group is actively addressing past financial errors and searching for a new CEO after recent executive departures.
In the first half of the fiscal year, C&C Group, renowned for its popular Magners cider, recorded a significant increase in underlying operating profits, climbing 29% to reach £33.5 million (€40.3 million). This financial growth occurred despite challenging summer weather conditions, which negatively impacted cider sales.
The company faced a decrease in overall sales during this period, with revenues slipping to £717.9 million (€861.4 million). This decline is attributed to the company’s decision to offload its non-core soft drinks segment in Ireland. Moreover, branded sales saw a 9.1% reduction, and Magners volumes fell by 10%. This is partly due to adverse weather and fans traveling overseas for the Euro 2024 games, which affected domestic alcohol consumption.
Chair and interim CEO, Ralph Findlay, expressed satisfaction with earnings aligning with expectations for the half-year mark in 2025. He emphasized the inherent appeal and resilience of the company’s brands, highlighting both Tennent’s and Bulmers’ success in growing their market share. Additionally, brands like Menabrea and Orchard Pig displayed remarkable performance with double-digit revenue growth.
As C&C Group gears up for the busy trading period around Christmas and New Year, the focus remains on delivering excellent service and enhancing operational efficiency, while simultaneously seeking a new CEO. This search follows the resignation of Patrick McMahon, who stepped down promptly amidst revelations of financial discrepancies within the company.
These financial inaccuracies led to significant adjustments in the company’s statements, including the reallocation of operating profits. As a result, operating profit for the fiscal year 2024 was restated, moving €7.6 million (£6.3 million) from the second half to the first half. C&C Group remains determined to rectify these issues while positioning itself for future growth.
C&C Group continues to demonstrate financial resilience, tackling operational challenges while focusing on strategic growth and leadership stability.
