C&C Group (CCR) H2 2025 earnings summary

Executive summary

• Delivered a solid FY25 performance with robust recovery in distribution, stable underlying revenue, and strong free cash flow generation of €69 million.

• Operating profit rose to €77.1 million, up 29% year-over-year, with improved service and customer growth in distribution.

• Management transition with a new CEO, strengthened board, and focus on business basics and operational improvement.

• Launched the Simply Better Growth program and strategic focus on simplification, operational improvement, and digital capability to drive long-term volume and margin growth.

• Tennent's and Bulmers brands maintained or gained market share, with customer service and retention improved.

Financial highlights

• Operating profit increased by 29% year-over-year to €77.1 million.

• Net revenue increased 1% to €1,666 million, with branded revenue down 5% and distribution up 2%.

• Adjusted EBITDA grew 20% to €112.0 million, and adjusted profit before tax rose 44% to €55.9 million.

• Free cash flow was €69 million, slightly below last year, and operating margin improved by 1 percentage point to 4.6%.

• Full-year dividend of 6.13c declared, up 5%, with €53 million returned to shareholders and a further €15 million buyback initiated.

Outlook and guidance

• Medium-term targets: at least €100 million operating profit, €75 million free cash flow, €150 million shareholder returns by FY2027, and leverage at around 1.0x EBITDA.

• FY26 expected to see modest inflation, with most commodity costs fixed and CapEx similar to FY25 at around €19-20 million.

• Encouraging start to FY26, with performance on track for full-year expectations and positive early signs in hospitality.

• Focus on growth opportunities in both branded and distribution businesses, with continued restoration of market-leading service levels.