# C&C Group lowers profit outlook amid weaker consumer demand

- Link: https://www.directorstalkinterviews.com/cc-group-lowers-profit-outlook-amid-weaker-consumer-demand/4121236271
- Published: 2026-01-23T07:34:39+00:00
- Author: Amilia Stone

**C&C Group plc** (LON:CCR) has provided a trading update for the year to date.

**Trading Overview**

As the Group approaches the end of its financial year, overall trading is below 
the Board’s expectations. Customer performance across November and early December
was impacted by weak consumer confidence associated with the November UK Budget.
Our business performance was driven primarily by softer than anticipated demand 
in hospitality, alongside adverse product mix, as consumers continue to move away
from the consumption of wine and spirits, in favour of beer, across the market.

However, trading across the Christmas fortnight was in line with expectations. In
January to date we have seen continued softness of consumer demand in the market
and anticipate that this will continue for the balance of the current financial 
year.

While the Group continued to make strong progress in its key objectives around improving
customer service, developing brand execution, innovation and operational efficiency,
these actions were not sufficient to offset the combination of subdued market volumes,
unfavourable category mix and competitive pricing dynamics across the market.

**Financial Performance**

As a result of these factors, the Group now expects adjusted operating profit to
be in the range of €70m – €73m, reflecting the lower operating profits in our Distribution
business.

Within our overall performance, our brands continue to deliver well. Tennent’s and
Bulmers performed strongly across the festive period and have delivered well against
our new innovation objectives.  

The business continues to be cash generative, and we anticipate continued solid 
underlying cash generation for the year.  The business remains financially robust
with a strong balance sheet, significant liquidity and covenant headroom. The Board
remains committed to its capital return plans of returning a total of €150m over
the previously announced timescale with €92m already returned as reported in our
interim results.

**Outlook**

The Board expects a continuation of the current macroeconomic and consumer headwinds
into next year but remains confident in the Group’s ability to create value for 
shareholders in the medium to long term.  It is currently anticipated that FY27 
profits will be similar to the current year, reflecting the impact of planned reductions
in volumes through the Distribution channel as less profitable business is exited,
but the lag between revenue decrease and cost reduction initiatives is expected 
to lead to some degree of short-term profit dilution.  

The business will continue to prioritise:

·    Operational simplification and cost discipline

·    Margin rebuild in the Distribution business through disciplined pricing and
revenue management

·    Strengthening brand equity and innovation in core categories

·    Accelerated efficiency programmes to support medium term profit recovery

C&C Group will provide a fuller update on trading, along with an update on its future
strategic direction, in May 2026 as previously disclosed.

**Next update |** Full year results – 19^(th) May 2026

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