C&C swings back into profit as Matthew Clark Bibendum grows

Drinks firm C&C Group, which produces brands including Tennent’s beer and Bulmers cider, has returned to profit with a “resilient performance”.

For the 12 months to 28 February 2025, the group posted a net operating profit of €45.8m (£38.4m), compared to an €84.4m (£70.8m) loss the previous year.

The results are the first posted by the company since the discovery of “accounting mistakes and errors” in its results from 2021-2023.

Its former chief executive Patrick McMahon stepped down last June after the errors were discovered.

Net revenue was up 13% to €1.66b (£1.39b) in C&C’s latest filings compared to 2024’s €1.65b (£1.38b).

The group said growth was driven by its Matthew Clark Bibendum wholesale arm, which saw revenue jump 3.5% to €1.36b (£1.14b) with an 8% increase in customer numbers.

Meanwhile, Tennent’s and Bulmers achieved market share gains as Magners continued its relaunch, and C&C improved its operating margins by just over 1% in both its branded and distribution segments.

However, C&C’s bottom line was reduced by exceptional charges of €31.3m (£26.2m), which included €23.8m (£20m) of restructuring costs.

The group has closed depots in Edinburgh, London and Tipperary, as well as a site in Shepton Mallet near Bristol, and transferred operations from its Park Royal depot in London to a new Orbital West London facility.

Around €500,000 (£420,000) was also spent on brand development, including the relaunch of the Magners brand following the agreement with Budweiser Brewing Group to reassume control of its cider portfolio in Britain this year.

The group also paid out €1.8m (£1.5m) in redundancy and legal costs relating to the group’s directors, including a €1.4m (£1.2m) settlement to McMahon.

Roger White, who took over as group chief executive officer in December 2024, said that C&C had “progressed on a number of fronts over the last year”, despite a challenging market.

He said there were future growth opportunities for both Tennent’s and Bulmers, which had showed “encouraging” premium brand performance.

“Looking ahead, year to date trading is encouraging. With the key summer trading period ahead, we are executing our plans for the year, supporting our customers, investing in innovation and brand-building, people, and systems, whilst continuing to simplify the business and control costs,”  said White.

“We remain focused on building a solid platform from which we can maximise the potential of the group. We are developing plans to grow sustainably whilst delivering on our financial targets, creating increased long-term shareholder value.”