C&C Group plc

FY '26 revenue declined 6% year-on-year. Operating profit was EUR 70.5 million versus EUR 77.1 million a year earlier, and operating margin was 4.5%, broadly flat. Branded revenue increased 4% to EUR 310 million; branded operating profit rose to EUR 51 million from EUR 46.1 million, with margin up 1.1 percentage points to 16.5%. Distribution revenue decreased 8%, and distribution operating profit fell to EUR 19.5 million from EUR 31 million. Free cash flow before exceptionals was EUR 45.3 million, adjusted EBITDA was EUR 104 million, exceptional costs were EUR 40.7 million pretax, and the cash cost of exceptionals was EUR 20.8 million. Net debt ended at EUR 121.4 million pre-IFRS 16, leverage was 1.6x, and the board proposed a final dividend of EUR 0.0367, taking the full-year dividend to EUR 0.0575. For FY '27, management said it expects net cost inflation after hedges, with hedges broadly covering the year ahead, and said trading is currently in line with expectations.

Roger White framed the year as one of stabilizing the business and fixing execution basics before pushing harder on strategy. He said C&C has built a stronger platform, but acknowledged the business still needs more resilience and agility to withstand market headwinds. His tone was candid and reform-minded: he emphasized a shift away from managing mostly for profit toward driving volume growth in owned brands and making wholesale more intentional and disciplined.

Adam Phillips focused on the mechanics behind the weaker year: revenue down 6%, operating profit down to EUR 70.5 million, and free cash flow before exceptionals of EUR 45.3 million. He said the cash drag came mainly from a EUR 21 million working capital outflow, including a circa EUR 5 million reduction in receivables securitization drawdown, plus EUR 40.7 million of exceptional costs, of which EUR 20.8 million was cash. He also noted net debt of EUR 121.4 million, leverage of 1.6x, and a capital structure with long-dated debt maturities extending to 2030, 2032. On capital returns, he said FY '26 shareholder returns were EUR 38.2 million, including EUR 23.1 million of dividends and EUR 15.1 million of buybacks, and the board proposed a EUR 0.0367 final dividend.

Analysts pressed management on whether the targeted 3% to 4% MCB margin was realistic after past disappointments, and whether the mix of the wholesale business or the broader on-trade market needs to improve first. Management said the target should be achievable through cost discipline, commercial control, and buying margin even without a favorable mix shift, and that the business must adapt to market changes rather than rely on consumers changing back. Questions also focused on brand growth outside Scotland and Ireland, multi-beverage expansion, and how many SKUs the newly merged Matthew Clark/Bibendum operation should carry; management said England and Wales matter over time, multi-beverage means including soft drinks, juices, water and low/no alcohol, and the SKU list still needs work to remove complexity.