C&C Group lifts operating profit 4% to €43.4 million in first half
Key Facts
C&C Group reported a 4% increase in operating profit before exceptional items to €43.4 million for the six months ended 31 August 2026, representing the first half of its 2027 financial year. Operating profit on this basis was €41.9 million in the corresponding period of the previous financial year. Net revenue, meanwhile, fell 4% on a reported basis to €794.9 million from €825.7 million, and declined 3% excluding the impact of currency movements. The results reflected diverging trends: profit and cash flow growth despite a contraction in revenue. The company said in its announcement published on the London Stock Exchange website that trading since the end of the period had been in line with expectations.
Profit before tax was €33.3 million, up 4% from €32.1 million in the previous first half. Underlying free cash flow also rose 18% to €36.9 million from €31.2 million. Net debt leverage was 1.4 times at 31 August 2026, compared with 1.1 times on the same date in 2025, but below the 1.6 times recorded at the end of financial year 2026. The figures highlight improved profit and cash generation during the period, alongside higher leverage than a year earlier. The company set its interim dividend at 2.00 cents per share, compared with 2.08 cents per share in the first half of financial year 2026.
Growth in profit before exceptional items came as the two business units performed differently. Revenue in the Brands segment rose 3%, benefiting from favourable weather, the FIFA World Cup and targeted investment in brands and innovation. Distribution revenue fell 4% as the company made its planned exit from some lower-margin customer business. This meant the decline in overall revenue coincided with growth in Brands, while weaker Distribution was partly linked to the decision to leave less profitable business. Chief Executive Roger White said the group saw "early signs of improving momentum across the business."
The results come as the company transitions to its C&C Brands and MCB divisions, a direction it announced at its capital markets day on 24 September 2026, according to the company's correction to the announcement draft. C&C completed its acquisition of Asahi UK's wholesale distribution interests in October 2026, after the reporting period. The company began integrating supplier customers into MCB, expanding distribution operations within the unit. The development combines a business reorganisation with an acquisition, while first-half figures show growth in Brands and a decline in Distribution revenue. The results announcement did not describe the transition as a plan first announced with the interim accounts.
C&C set financial targets extending beyond the current financial year, including operating profit of €85 million in financial year 2030. It also targets cumulative free cash flow of more than €100 million during financial years 2028 to 2030. The company said operational service levels remained stable and that it remained on track to deliver full-year operating profit in line with market expectations. It also pointed to volatile market conditions and the importance of the upcoming Christmas trading period. White added that the economic environment remained volatile as the group awaited the festive trading season.