C&C Group Lowers Profit Outlook as Hospitality Weakness Pressures Distribution Arm

C&C Group plc (LSE:CCR) has revised down its profit expectations for the current financial year, citing trading conditions that have fallen short of board forecasts. The company pointed to subdued consumer confidence following the UK November Budget, softer demand across the hospitality sector, and a shift in consumption away from wine and spirits towards beer as key factors weighing on performance.

C&C now expects adjusted operating profit to fall within a range of €70m to €73m, primarily reflecting weaker profitability in its Distribution division. This was partly offset by resilient festive trading across its core Tennent’s and Bulmers brands. The group noted that it remains cash generative, supported by a strong balance sheet, solid liquidity and an ongoing €150m capital return programme, of which €92m has already been delivered.

Looking ahead, management expects macroeconomic and consumer pressures to continue into the next financial year. Profits in FY27 are anticipated to be broadly in line with FY26 as the group exits lower-margin distribution volumes, a move that is expected to temporarily dilute margins. Strategic priorities remain centred on simplifying operations, rebuilding margins within distribution, strengthening core brands and driving efficiency initiatives to underpin a recovery in medium-term profitability.

Overall, C&C’s outlook remains cautiously balanced. While financial performance shows signs of stability and recovery, supported by improving margins and cash generation, technical indicators point to ongoing bearish momentum and potential valuation pressure. Positive sentiment from recent earnings communications and corporate actions offers some support, though challenges around revenue growth and market conditions persist.

More about C&C Group

C&C Group plc is a drinks company engaged in the production, marketing and distribution of alcoholic beverages, with a strong market presence in beer and cider through brands including Tennent’s and Bulmers. The group also operates a sizeable drinks distribution business, supplying the hospitality sector across the UK and Ireland.