C&C Group Reports Decline in Pretax Profit

Overview

C&C Group, the London-listed alcoholic-drink maker known for brands like Magners, Bulmers, and Tennent's, has announced a decline in pretax profit for the six months ending August 31. The company reported a one-off charge related to disruption from system implementation challenges in its distribution business, leading to a pretax profit of EUR16.8 million, down from EUR47.1 million the previous year. Despite these challenges, C&C Group remains committed to improving customer service levels and operating efficiency.

Financial Results

Revenue for the period experienced a 3.9% decline, totaling EUR1.06 billion. The company attributes this decrease to the operating environment challenges it faced. C&C Group anticipates continued cost pressure in the next 12 months, although some relief is expected in fiscal 2025. To counter these challenges, the company plans to focus on increasing branded goods margins through pricing and cost actions, as well as improving operating efficiency.

Shareholder Returns

Despite the decline in profit, C&C Group remains committed to returning value to its shareholders. The company plans to distribute up to EUR150 million over the next three years through dividends and other capital returns. The board has already declared an interim dividend of 1.89 European cents per share.

Future Outlook

Looking ahead, Chief Executive Patrick McMahon emphasizes that delivering outstanding service and winning customers will remain top priorities for C&C Group. The company aims to simplify its business operations and improve operating efficiency during the second half of the year.