C&C Group reports trading conditions ‘remain tough’ but outperforming market, sees ‘significant’ growth in distribution in UK hospitality sector: C&C Group has said trading conditions “remain tough” but it is outperforming the market and has seen “significant” growth in distribution in the UK hospitality sector with Matthew Clark and Bibendum customer numbers up 10%. The group said earnings are on track to meet full-year expectations. It added it was also on track to achieve €80m operating profit for FY2025 with cost efficiencies in the first half of the financial year to further enhance margins in the second half. C&C Group said it was retaining a target of €100m operating profit in FY2027. It comes as the business reported net revenue fell to €861.4m for the six months ending 31 August 2024 compared with a restated €879.1m the year before following the accountancy errors that were identified in June 2024. Operating profit before exceptional items was up to €40.3m from a restated €38.7m the previous year. Adjusted Ebitda increased to €57.0m from a restated €54.7m while pre-tax profit was down to €28.6m from €28.9m the year before. The company said “encouraging” net revenue growth of 2% in Matthew Clark & Bibendum “demonstrated customer recovery and growth momentum in our distribution channel”. C&C Group stated: “Matthew Clark and Bibendum customer numbers were up 10% as at 31 August 2024, with high customer retention, customer gains and expansion of key customers such as Admiral Taverns contributing to this positive performance. In the wider market, Great Britain on-trade volumes were down 2.8% on a moving annual total, with declines in wine (7.9%) and spirits (10.7%) reflecting pressure on discretionary spend. Encouragingly, C&C outperformed the market with share of the Great British on-trade volume up 0.7 percentage points on a moving annual total basis, and by 0.9% in the past 12 weeks. Trading conditions remain tough, and sentiment regarding the UK autumn Budget (30 October 2024) has generated some consumer caution. However, positively, we have well executed plans in place for the Christmas and new year period, as well as encouraging trading momentum. Furthermore, we look forward to regaining control of our cider portfolio in GB from January and are focused on investment plans and strategic initiatives to reinvigorate the Magners brand. More generally, we are focused on achieving our targets for the current financial year and generating value for our shareholders over the longer term.” C&C Group said core brands Tennent’s and Bulmers gained on-trade market share “further cementing market-leading positions”. The company’s premium brands delivered double-digit revenue growth with Menabrea up 17% and Orchard Pig up 20%. Chief executive and chair Ralph Findlay said: “I am pleased to report earnings in-line with expectations in HY2025 as we rebuild performance and momentum within the business. Despite unfavourable summer weather, our brands demonstrated inherent appeal and resilience with both Tennent’s and Bulmers growing market share and Menabrea and Orchard Pig achieving double-digit revenue growth. I am also encouraged that we achieved significant growth in distribution in Matthew Clark and Bibendum with customer numbers in August up 10% versus the prior year. We continue to make improvements with regards to customer service, which underpins our customer acquisition strategy. As we enter the busy Christmas and New Year trading period, we are committed to delivering outstanding service, winning customers, continuing to simplify the business and to further improve operating efficiency.”

 

Patisserie Valerie parent appoints new group MD: Flour Power Group has appointed Vikesh Patel as group managing director, overseeing the Patisserie Valerie and Bakers + Baristas brands. Patel joined the group in 2018 when it acquired Love Koffee, the coffee business he founded. He has been part of the Flour Power Group’s senior leadership team since then and group chief operating officer since early 2020. Patel replaces James Fleming, who is leaving the business after seven years as group chief executive to pursue other opportunities Patel said: “I’m thrilled to lead such a talented team in shaping the next stage growth for the group. Building on the strong heritage of our brands, and our market leading innovation pipeline, I’m excited about the growth opportunities across all our channels.” Flour Power Group, majority-owned by Causeway Capital, manages the Patisserie Valerie and Bakers + Baristas brands. Patisserie Valerie has been serving handmade cakes since 1926, available nationwide through its online delivery platform, retail partners, and ten patisseries. Earlier this month, Propel revealed Patisserie Valerie has turned to franchising to rebuild its estate and plans 20 new locations by 2026. Bakers + Baristas offers freshly baked goods, coffee, and light meals across 58 UK and Ireland retail locations, including a growing franchise network.