Beer and cider maker C&C Group has said it expects “challenging” economic conditions to persist as the rising cost of living weighs on consumers.
The company added that volumes have dropped in many product categories as “fragile” consumer sentiment has caused many Britons to curb spending on visits to pubs and restaurants.
C&C, which makes Tennent’s and Magners, said sales at pubs and other hospitality venues have been resilient, but growth in beer has been “at the expense of wines and spirits”, which have seen their share of sales slip over the past year.
The firm reported that net revenues slipped by 4% to 825.7 million euros (£724.4 million) for the six months to August 31, compared with a year earlier, driven by changes to its distribution agreement with Budweiser Brewing Group.
The Tennent’s and Bulmers brands saw net revenues grow, while Magners delivered improvements in grocery sales.
C&C said adjusted pre-tax profits lifted by 12% to 32.1 million euros (£28.2 million) for the half-year.
Chief executive Roger White said: “We have delivered a solid first-half performance against a challenging market backdrop.
“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.”
The company added that “2025 has been another year of turbulence for the hospitality industry” in the face of challenging economic conditions and volatile consumer confidence.
The FTSE 250 business said it expects “solid trading” over the rest of the year and it is on track to hit its trading guidance for the year.
Shares in C&C moved 1.5% higher on Tuesday.
