Download PDF

1. Company Snapshot

1.a. Company Description

C&C Group plc manufactures, markets, and distributes cider, beer, wine, spirits, ales, and soft drinks in the Republic of Ireland, Great Britain, and internationally.The company offers its products primarily under the Tennent's, Bulmers, and Magners brand name.It also distributes third party branded beers, wines, spirits, cider, and soft drinks.


C&C Group plc was founded in 1935 and is headquartered in Dublin, the Republic of Ireland.

Show Full description

1.b. Last Insights on CCR

C&C Group plc's recent performance has been driven by the appointment of Roger White as CEO, a drinks-industry veteran with over 20 years of experience. This change in leadership is expected to bring stability and direction to the company. Additionally, insider buying activity has been observed, with notable purchases by company executives and directors, indicating confidence in the company's future prospects. This, combined with the company's efforts to navigate the challenging market environment, suggests that C&C Group is well-positioned for growth and resilience in the face of economic uncertainties.

1.c. Company Highlights

2. C&C Group's H1 FY '26 Results: Solid Performance Amidst Revenue Headwinds

C&C Group reported a mixed set of results for H1 FY '26, with revenue declining 4% year-on-year due to the loss of Budweiser Brewing Group distribution in Ireland, but operating profit rose 4% driven by efficiency improvements and cost reduction. Earnings per share (EPS) came in at 0.05797, slightly below analyst estimates of 0.06167. Despite the revenue headwinds, the company's operating margin improved by 40 basis points, driven by margin expansion in both the Branded and Distribution segments. The company's cash generation was strong, with leverage at 1.1x, and free cash flow expected to be similar to FY '25.

Publication Date: Nov -02

📋 Highlights
  • Operating Profit Growth:: 4% increase driven by efficiency and cost reductions, despite 4% revenue decline from BBG transition.
  • Margin Expansion:: Group operating margins rose 40 basis points, with improvements in both Branded and Distribution segments.
  • Strong Cash Generation:: Free cash flow expected to match FY '25, leverage at 1.1x, and GBP 30M buyback planned over 18 months.
  • Branded Segment Performance:: Bulmers revenue up 6%, Kantar brand power +9.5%, and Magners drove awareness gains with GBP 90M on-trade sales.
  • Shareholder Returns:: Interim dividend increased 4%, targeting EUR 150M returned by FY '27 via dividends, buybacks, and special dividends.

Segment Performance

The Branded segment saw resilient brand performance, with Tennent's enjoying significant sales at national stadia and launching a new limited edition beer, Tennent's Bavarian Pilsner. Bulmers delivered a strong first half with total revenue up 6%, driven by focused brand investment and a revitalized brand communication strategy. Magners made its largest brand investment in over a decade, driving brand health improvements in awareness and consideration. The Distribution business, Matthew Clark Bibendum, is on the road to recovery, with service performance now fully recovered.

Outlook and Guidance

C&C Group is focusing on three key objectives: simplifying core central operations, growing volume in the branded segment, and improving margin in the distribution segment. The company expects low single-digit inflation in the next year and plans to offset this through efficiency and cost savings, with modest price increases if necessary. The company targets growth in branded business, margin improvement in distribution, and efficiency through cost savings, with a planned buyback of GBP 30 million over the next 18 months to achieve a total cash return of GBP 150 million.

Valuation and Dividend Yield

With a P/E Ratio of 44.27 and an EV/EBITDA of 7.0, the company's valuation appears to be pricing in a certain level of growth. The Dividend Yield of 3.84% is attractive, and the company's commitment to returning cash to shareholders is evident in its plans to return EUR 150 million to shareholders by FY '27. The Net Debt / EBITDA ratio of 1.9 is manageable, indicating a relatively healthy balance sheet. As per analyst estimates, next year's revenue growth is expected to be -5.4%, which may impact the company's ability to sustain its current valuation multiples.

3. NewsRoom

Card image cap

C&C Group plc (LON:CCR) Stock's Been Sliding But Fundamentals Look Decent: Will The Market Correct The Share Price In The Future?

Nov -30

Source:

Card image cap

Just Three Days Till C&C Group plc (LON:CCR) Will Be Trading Ex-Dividend

Nov -09

Source:

Card image cap

Magners maker C&C says challenging conditions set to ‘persist’

Oct -28

Source:

Card image cap

C&C Group reports H1 sales decline; CFO to exit

Sep -18

Source:

Card image cap

What Is C&C Group plc's (LON:CCR) Share Price Doing?

Sep -17

Source:

Card image cap

C&C Group (LON:CCR) shareholders have endured a 2.8% loss from investing in the stock five years ago

Aug -21

Source:

Card image cap

Cheap Foreign Small-Caps Offer Big Gains in a Trade War

Jun -18

Source:

Card image cap

C&C Group plc's (LON:CCR) Has Been On A Rise But Financial Prospects Look Weak: Is The Stock Overpriced?

Jun -16

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.87%)

6. Segments

Distribution

Expected Growth: 0.8%

Stable cash flow generation from C&C Group plc's mature brands, such as Bulmers and Magners, supports consistent dividend payments. Additionally, the company's diversified geographic presence and growing presence in emerging markets contribute to the 0.8% growth rate.

Branded

Expected Growth: 1.2%

C&C Group plc's branded segment growth of 1.2% is driven by increasing demand for premium beverages, successful product innovation, and expansion into new markets. Additionally, strategic partnerships, effective marketing campaigns, and a strong distribution network contribute to the segment's growth.

Co Pack/Other

Expected Growth: 0.9%

C&C Group plc's Co Pack/Other segment growth of 0.9% is driven by increasing demand for contract packaging services, expansion into new geographic markets, and strategic partnerships with major beverage companies. Additionally, the segment benefits from cost savings initiatives and operational efficiencies, which contribute to its steady growth.

7. Detailed Products

Bulmers Cider

A premium cider brand with a rich history and heritage, offering a range of flavors and varieties

Magners Irish Cider

A popular Irish cider brand with a crisp, refreshing taste and a range of flavors

Tennent's Lager

A Scottish lager brand with a rich history and a range of flavors, including Tennent's Super and Tennent's Lager

Clonmel 1650 Irish Whiskey

A premium Irish whiskey brand with a smooth, rich flavor profile

Finlandia Vodka

A premium vodka brand with a crisp, clean taste and a range of flavors

Harte's Irish Craft Beer

A range of craft beers brewed in Ireland, offering unique flavors and styles

8. C&C Group plc's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for C&C Group plc is moderate due to the presence of alternative beverages in the market.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong brand portfolio and wide distribution network.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the company's dependence on a few large suppliers for raw materials.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the beverage industry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the market, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 26.61%
Debt Cost 8.20%
Equity Weight 73.39%
Equity Cost 10.27%
WACC 9.72%
Leverage 36.26%

11. Quality Control: C&C Group plc passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Sipef

A-Score: 6.8/10

Value: 6.7

Growth: 5.1

Quality: 7.2

Yield: 3.1

Momentum: 9.0

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Malteries Franco-Belges

A-Score: 6.2/10

Value: 4.2

Growth: 6.9

Quality: 6.6

Yield: 2.5

Momentum: 8.5

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Wawel

A-Score: 5.8/10

Value: 5.9

Growth: 4.6

Quality: 6.4

Yield: 3.1

Momentum: 6.5

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Zinzino

A-Score: 5.6/10

Value: 3.9

Growth: 9.0

Quality: 7.4

Yield: 4.4

Momentum: 8.0

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
Tokmanni

A-Score: 5.0/10

Value: 7.1

Growth: 4.8

Quality: 3.2

Yield: 9.4

Momentum: 2.5

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
C&C

A-Score: 4.2/10

Value: 6.0

Growth: 4.0

Quality: 3.0

Yield: 3.8

Momentum: 2.0

Volatility: 6.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.26$

Current Price

1.26$

Potential

-0.00%

Expected Cash-Flows