Despite the damp summer weather adversely affecting cider sales, C&C Group's earnings show an upward trend.
C&C Group, the manufacturer of notable brands such as Magners and Bulmers, posted increased profits in its 2025 fiscal year, despite a challenging weather condition that dampened cider sales over the previous summer.
In the 12 months ending 28 February 2025, the company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by 18.3% to €112 million. This was accompanied by a pre-tax profit of €19.6 million, a marked improvement from the €111.6 million loss recorded in the prior year, due to a one-time €125 million impairment charge linked to difficult trading conditions in the UK cider market.
The persistently wet weather impacted cider consumption across the UK and Ireland during the summer of 2024, causing volumes of Magners to decline by 5% and net sales of Bulmers in Ireland to drop by 2%. Additionally, volumes of Tennent's lager experienced a 6% decrease, which the company attributed not only to unfavorable weather but also to the estimated 200,000 Scottish fans attending the Euro 2024 football tournament in Germany.
Despite this, C&C Group's overall net revenue for 2025 grew by 13% to €1.67 billion, in large part due to growing customer levels in its Matthew Clark Bibendum distribution arm.
Roger White, the chief executive of C&C, remarked, "In the face of ongoing challenging macroeconomic and market conditions, the group has progressed on multiple fronts throughout the past year." White took over the company at the start of 2025 after two decades leading the Irn-Bru manufacturer AG Barr.
Trading for C&C Group during the current year has been encouraging in its core divisions, bolstered by higher demand for long alcoholic drinks in on-trade venues. The company is optimistic about achieving its full-year earnings forecasts, having already hedged a majority of its major cost lines for the current financial year.
Retail and hospitality businesses may face significant cost headwinds over the next year due to tax and minimum wage increases announced by Chancellor Rachel Reeves in the 2024 Autumn Budget. From March 2025, the National Living Wage increased by 6.7% to £12.21 per hour, while employers' National Insurance contributions rose to 15% on annual salaries above £5,000, from 13.8% on wages exceeding £9,100.
Many trading groups and hospitality businesses have warned that these measures could lead to job losses, reduced investment, and venue closures.
C&C Group's shares were up by 1.4% to 157p in early Wednesday afternoon trading, representing a growth of approximately 7.5% for the year.
- Roger White, the new CEO of C&C Group, expressed optimism about achieving the company's full-year earnings forecasts, as they have already hedged a majority of their major cost lines for the current financial year, indicating a focus on finance and business management.
- In addition to its core alcoholic beverage brands, C&C Group's net revenue grew in 2025 due to increasing customer levels in its Matthew Clark Bibendum distribution arm, suggesting a potential expansion into the food-and-drink retail sector and a broader lifestyle focus.
- Despite the challenging macroeconomic conditions and increased costs for retail and hospitality businesses, such as the National Living Wage and National Insurance contributions, C&C Group's shares showed growth, indicating that investors find potential in its financial performance and business strategies.
