Last close As at 01/10/2026
GBP0.98
▲ −2.50 (−2.49%)
Market capitalisation
GBP363m
Research: Consumer
C&C Group’s (CCR’s) capital markets day set out its strategy as a branded multi-channel, multi-beverage specialist operating through two businesses: C&C Brands targets volume growth and Matthew Clark Bibendum (MCB) targets margin growth. The medium-term target is to grow operating profit to €85m in FY30, c 21% higher than FY26’s €70.5m, and generate more than €100m free cash flow (FCF) after leases and exceptional costs in FY28–30 versus FY24–26’s €72m. Having largely simplified operations, controlled costs and restored customer service levels, the group is now focused on core brand innovation, consolidation and profitable partnerships. Evidence of delivery against these targets could support higher valuation multiples.
C&C Brands’ focus is on volume growth after a period of price-led growth. Management is leveraging the strength of its core brands (Tennent’s, Bulmers, Magners) to innovate into more product formats and flavours and increase production. It is well positioned: Tennent’s accounts for one in two on-trade pints in Scotland and Bulmers has c 60% of the Irish cider market. Management guides to revenue growth and a 50–100bp decline in C&C Brands’ operating margin, reflecting expected mix changes. Conversely, MCB is focused on growing its operating margin to 3%+ (FY26 c 1%) through volume consolidation, brand partnerships, price optimisation, improved branded mix and a lower cost to serve. The distribution network has capacity for c 50% more volume. Management believes the industry may consolidate in the future and it is in a good place to capture the extra volume, as seen with the acquisition of Asahi UK’s direct distribution. With 20% of SKUs generating more than 80% of margin, management is prepared to exit low-return business and anticipates a revenue decline excluding any consolidation activity.
The group’s spare production capacity supports low capex requirements and provides a good basis for the FCF target. Cash priorities are to keep target leverage at 1.0–1.5x net debt/EBITDA on a pre-IFRS 16 basis versus 1.6x at FY26, continue investing in the business and pay a progressive ordinary dividend. Surplus capital could be used for growth investments, acquisitions or shareholder returns.
CCR’s FY1 P/E multiple is at a discount to the peer average of 16.1x and its dividend yield is at a premium to the 3.4% of its peers.
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Historical financials and consensus estimates |
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|---|---|---|---|---|---|---|---|---|
| Year end | Revenue (€m) | EBIT (€m) | PBT (€m) | EPS (EUc) | DPS (EUc) | P/E (x) | Yield (%) | EV/EBITDA (x) |
| 2/25 | 1,665.5 | 77.1 | 55.9 | 11.70 | 6.13 | 9.8 | 5.3 | 4.9 |
| 2/26 | 1,569.8 | 70.5 | 49.8 | 10.20 | 5.75 | 11.3 | 5.0 | 5.2 |
| 2/27e | 1,491.0 | 70.9 | 47.6 | 10.50 | 5.60 | 10.9 | 4.9 | 5.3 |
| 2/28e | 1,485.0 | 70.6 | 50.0 | 11.30 | 5.90 | 10.2 | 5.1 | 5.1 |
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United Kingdom
Research: Consumer
Shepherd Neame’s FY26 results show a business making satisfactory progress despite a difficult sector backdrop, with pub trading continuing to demonstrate resilience, supported by investment in the estate. London remains the standout area, while the broader estate also benefited from a stronger finish to the year. The main issue is clearly Brewing and Brands, where weaker external volumes and elevated logistics costs, which have almost eradicated profit, have prompted a strategic review of the division. Current trading into FY27 is encouraging, with the improved momentum seen late in FY26 continuing into the new year, including a recovery in beer volumes and accommodation, although management remains cautious on the outlook for inflation, interest rates and the potential impact of a tourism tax.