C&C Group (CCR) H1 2025 earnings summary

Executive summary

• HY2025 performance met expectations, with operating profit up 29% to €40.3m and a 6% dividend increase; €15m share buyback completed and a second tranche underway as part of a €150m capital return plan by FY2027.

• Free cash flow improved to €19.4m, supporting disciplined capital allocation.

• Core brands Tennent's and Bulmers gained on-trade market share, while premium brands Menabrea and Orchard Pig delivered double-digit revenue growth.

• Distribution channel (Matthew Clark & Bibendum) saw net revenue growth, a 10% increase in customer numbers, and operational improvements.

• Leadership changes included new non-executive director appointments, executive hires, and ongoing CEO recruitment.

Financial highlights

• Net revenue declined 2.9% year-over-year to €861m, mainly due to the exit from non-core activities and soft drinks disposal.

• Operating profit rose to €43.3m, up €9m year-on-year, with operating margin improving to 4.7%.

• Adjusted EBITDA reached €57.0m, up from €53.5m in HY2024.

• Free cash flow (excluding exceptionals) increased to €19.4m from €0.7m year-over-year.

• Net debt/Adjusted EBITDA at 1.1x (excluding leases), with net borrowings €30m lower than last year.

Outlook and guidance

• On track to meet full-year expectations and 2027 financial targets: €2 billion sales, €100 million EBIT, €75 million free cash flow, and leverage around 1.0x.

• Distribution recovery and margin improvement expected to drive most profit growth in H2.

• Optimistic outlook for the festive trading period, with business better prepared operationally.

• Plans to regain control of the Magners cider portfolio in GB from January 2025 and reinvest in the brand.