C&C Group plc

Group revenue declined 6% year on year. Operating profit was EUR 70.5 million versus EUR 77.1 million a year earlier. Operating margin was broadly flat at 4.5%. Branded revenue increased 4% to EUR 310 million; Branded operating profit rose from EUR 46.1 million to EUR 51 million, and margin improved 1.1 percentage points to 16.5%. Distribution revenue fell 8%, and Distribution operating profit declined from EUR 31 million to EUR 19.5 million. Adjusted EBITDA was EUR 104 million, free cash flow before exceptionals was EUR 45.3 million, net debt ended at EUR 121.4 million pre-IFRS 16, and leverage was 1.6x. Exceptional costs totaled EUR 40.7 million pretax, of which EUR 20.8 million was cash. The board proposed a final dividend of EUR 0.0367, bringing the full-year dividend to EUR 0.0575. Management said FY '27 costs are expected to rise net of hedges, with key cost lines well hedged for the year ahead, and said trading is currently in line with expectations.

Roger White said FY '26 was about stabilizing the company after a tough year in hospitality and wholesale, but he was frank that external headwinds still outweighed progress. His tone was cautious but constructive: he repeatedly stressed the need to build resilience, improve data and cost clarity, and avoid the execution issues that have hurt the business in the past. Strategically, he said C&C will move toward two clearer operating businesses — C&C Brands and MCB — and that the group will be more intentional about mix, pricing, and where it competes.

Adam Phillips said the group generated EUR 104 million of adjusted EBITDA and EUR 45.3 million of free cash flow before exceptionals, but working capital was a EUR 21 million outflow and exceptional costs totaled EUR 40.7 million pretax. He noted that branded margins improved while Distribution was diluted by volume and mix, and said net debt ended at EUR 121.4 million pre-IFRS 16 with leverage at 1.6x. On outlook, he said the business is well hedged for FY '27, cost inflation is still expected net of hedges, and shareholder returns in FY '26 were EUR 38.2 million, split between EUR 23.1 million of dividends and EUR 15.1 million of buybacks.

Analysts pressed management on whether a 3% to 4% margin target for Matthew Clark Bibendum is realistic, what needs to change in the SKU mix, and whether market conditions need to stabilize first. Roger White said the target is achievable through a combination of commercial control, cost range, complexity reduction, and buying margin improvements, and stressed it must be delivered on the current mix rather than relying on category shifts. He also said the wholesale business needs to become more flexible and resilient to changing consumer demand, and that the new single product list is only the start of a broader renovation.