Drinks group C&C has reported higher adjusted profits before tax for the six months to the end of August, but its net revenue for the half year slowed amid a challenging market backdrop.
C&C reported adjusted profit before tax of €31.1m, an increase of 12% on the €28.6m reported the same time last year. The company's operating profits rose by 4% to €41.9m from €40.3m.
But its half year revenues dipped 4% from €861.4m to €825.7m, mainly due to the transfer of Budweiser Brewing Group volumes in Ireland.
C&C said its interim dividend has been set at 2.08 cent per share, an increase of 4% on last year.
The company said it had made further progress across the group in the six months ended 31 August 2025 despite a challenging market backdrop.
"We have improved our operating performance across the business ensuring we delivered market leading service, range, and value to all our customers. In addition, we have made further progress in improving our financial controls, whilst continuing to invest in our core brands," it added.
Roger White, C&C's chief executive, said the company continues to invest in initiatives to support improved business performance - building brands, delivering service, range and value to customers and consumers.
"In addition, we have made good initial progress in our programme to simplify and improve our core business processes," the CEO said.
"We believe we are well prepared for the all-important festive trading period, and whilst we expect challenging economic conditions to persist, we remain committed to the delivery of our full-year earnings targets," he added.
Breaking down its markets, C&C said that 2025 was another year of turbulence for the UK hospitality industry, influenced by changing fiscal and economic conditions, shifting consumer trends and varied levels of consumer confidence.
It noted that drink-led venues proved resilient in the six month period, growing 1% whereas food-led outlets fell 2.9%.
C&C said that in the Off-Trade channel, competitive pricing remains a feature in England and Wales whilst, in Scotland, minimum unit pricing continues to require careful navigation for all brands.
It said the Irish On-Trade is experiencing similar headwinds with mounting cost pressures and some variability in consumer demand. It noted that tourism spend in June was down 6% year-on-year, though still ahead of 2023 levels, while grocery prices continued their inflationary trend in 2025, outpacing overall inflation.
C&C said the shift in mix towards beer and cider continued in the year, as consumers increased spending on both categories. Consequently, beer has once again grown its value share in the On Trade and now represents 45.4% of total category value share.
Within the beer category, stout continues to be the standout winner with sales value increasing 17% on the previous year.
But this growth in beer has been at the expense of wines and spirits, both of which have seen value share losses in the year, it added.
Its Bulmers cider product saw its net revenues increase by 6.6% as the positive impact of the summer weather in Ireland supported its performance with total cider market volumes, in both On-Trade and Off-Trade in growth at 4.1% and 5.8% respectively.
It said that during the six month period it launched Bulmers Zero with very positive initial volumes.
C&C said that after it regained control of the Magners brand in the UK in January 2025, its actions to reinvigorate the brand have commenced.
It said that as anticipated, the re-invigoration of Magners will take time.
"Although Magners' volumes in the period were behind last year, we have started to make positive progress especially in the Off-Trade with a number of new listings and an improving rate of sale, however this was more than offset by weaker performance in the On-Trade where a clear growth opportunity exists but will take more time to deliver," it stated.
Meanwhile, Tennent's outperformed total lager in the On-Trade channel, increasing market share in the latest 28-week period. Tennent’s net revenues were up 1.4% in the 6-month period, with pricing offsetting a volume decline of 2.8%. Overall beer consumption in Scotland declined over the latest six months, with volumes down 2.7%.
