C&C plans to relaunch Magners as group earnings stabilise

Drinks manufacturer C&C Group has said it intends to relaunch its Magners cider brand in the 2026 financial year after reporting steady trading.

The Ireland-headquartered business took back control and distribution of its cider portfolio, which included Magners and Bulmers, from Budweiser supplier AB InBev last year and said it has “exciting plans” for its brands.

The positive outlook came as C&C Group posted a trading update for the 12 months ended 28 February 2024.

It said group revenues were expected to be in line with last year, reflecting growth in its Matthew Clark Bibendum distribution business. This was due to disposing of its non-core soft drinks business in Ireland and its strategic exit from low-margin contract brewing volume, set against softer British cider sales during the summer trading period.

Acknowledging the additional pressures of the macroeconomic environment and last October’s UK Budget, the company said that despite these headwinds, it had made good financial progress and expected to report underlying earnings before interest and taxes (EBIT) of €76m-€78m (£64m-£65m).

This was modestly below C&C Group’s target due to softer trading in January and February, but reflected recovery versus the prior year’s earnings of €60m (£50m).

Furthermore, Matthew Clark Bibendum’s customer numbers grew 7% in the second half of the 2024 financial year.

The group expected 2026 financial year earnings to be marginally ahead of the current year, and aimed to deliver €100m (£84m) EBIT over the medium-term.

Chief executive Roger White, who joined C&C at the beginning of this year, said there was still “much work to be done to fully realise the potential across the group”, and added: “While 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. I remain confident of the significant long-term opportunity within the business.”

The business is emerging from a turbulent period that saw it post a £96m loss in the year to 29 February 2024 after accounting errors discovered in its previous results.

Last year activist shareholder Engine Capital published a scathing open letter that branded the company a “perennial underperformer” and encouraged it to conduct a strategic review in preparation for a sale. The dispute was subsequently resolved, with the US private investor pledging to “work constructively together” with C&C.

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