 Citywire - 10/1/25:
One for the road
To date, Sauerbronn is less happy about his position in C&C Group (GB:CCR). The group makes Tennent’s lager and Bulmer Irish cider – known internationally as Magners - as well as soft drinks and bottled water. It also owns the UK wholesaler Matthew Clark and the fine-wine merchant Bibendum which it bought in 2018 for a nominal in a rescue deal following the collapse of former owner Conviviality.
Setbacks in the past couple of years have come thick and fast, including a botched introduction of a computer upgrade, the resignation of its chief executive Patrick McMahon as a result of errors that took place during his time as finance director, and a sharp drop in revenues during the first half of the year.
Sauerbronn said he shared much of the sentiments of Engine Capital, a hedge fund that has called on the company to carry out a review with the aim of putting itself up for sale, though he felt it was asking for too big a place on board relative to its holding.
‘This company is probably too small to be independent. It should be part of something bigger. It’s up to them to show us otherwise – that they can be independent and deliver good returns on capital, growth,’ Sauerbronn said.
‘But there is a franchise there. They are a leader in Ireland in cider; they have a good position in beer in Scotland; they have Bibendum in the UK. Those are good franchises.’ |
Daily Telegraph- Questor 'buy' tip
Dry January is the perfect time to take a chance on this alcohol maker
The power of C&C’s brands has been well and truly tested this year – it’s still a buy |
Daily Mail - 1/1/25:
Russ Mould
For the brave: C&C
Current price: 146p
Change in 2024: down 4pc
The power of C&C's drinks brands, such as Bulmers, Magners and Tennent's, has been tested by rotten British weather, the cost of living crisis and self-inflicted wounds, notably a bungled software implementation and productivity programme at the Matthew Clark drinks distribution business. As a result, the shares are no higher than they were in 2009.
But the appointment of Roger White, formerly of AG Barr, is a huge step for a firm with scope for self-help, via investment in its premium cider and beer brands, cost efficiency in distribution and perhaps more dramatic action to simplify the group structure.
There is scope for net borrowing to come down, too, and less risk can mean a higher share price. |
4*
C&C Group posted a solid set of HY numbers that were in line with expectations despite poor summer weather and subdued market conditions. There was an overall marginal net revenue decline of -3% reflecting the disposal of the Group’s non-core soft drinks business in Ireland, lower contract brewing volumes and softer cider volumes in GB. But profit performance was far stronger as the Group’s efficiency drive continues to bear fruit. Underlying Group operating profit before exceptional items increased +29% (+€9.1m) to €40.3m in HY2025...
...from WealthOracle
wealthoracle.co.uk/detailed-result-full/CCR/921 |
i am tracking this now with interest
hxxps://www.thedrinksbusiness.com/2023/08/michael-saunders-resigns-from-cc-group/ |
This is looking good value nows o it is time for me to get my researching chapeau on |
Great entry opportunity today imo. From today's statement I take this.....C&C re-affirms the guidance given in its Pre-Close Trading Statement of 23 March 2023. Specifically, the Group expects to report operating profit of EUR84 million. C&C's strong free cash flow generation, together with increased balance sheet strength will also enable a re-instatement of dividend payments to shareholders, with respect to FY2023.Come back in 6 months and things should look very different., |
The C&C man used to drive his lorry round our way. Used to buy Kali Water and Icecream soda. If I buy some shares will I get a discount? |
C&C group PLC encompasses divisions focused on manufacturing and distributing branded wine, cider and soft drinks across the UK and Ireland. These highly enriching and stimulating initiatives forced up operating profit to €45-47m, reflecting the firm’s positive trading momentum. The group also enhanced its balance sheet, since it is focused on liquidity management and net debt reduction. As a result, net debt effectively plummeted from €442m to €263m, enabling the firm to be lowly geared while driving down the leverage ratio with the purpose of attracting new investors. Despite the firm’s robust financial performance, the group is trading at a discount, illustrated by the P/E of 13.1x, which is below the consumer staples P/E of 27.31x, signifying that the security is cheaply available for investors to purchase the stock and is likely to surge in value. |
good job! I have to say I'm astonished we saw sub £2 again. Just goes to show what a crazy market it has been recently. C&C Group should have a great year. There will be a LOT of cider consumed this summer. |
Yes average now £1.925 Very pleased with that. |
Well well well… things got perky |
I am all in here now |
Nice to check back in here, been a while! Still holding all mine. Expect a run to 300p+ this side of summer. Headwinds have massively faded now imo. |
Yep very positive, back to being a cash cow! Onwards & upwards |
That is a good report.
Back in profit, despite MC and Bib dragging through Q1,
Expectations of 50m in H2… I am topped back up |
Bouncing nicely on the alcohol tax reforms news. Inverse H&S looks to be playing out.. back to 300p please |
Stock all round for MC short. Looks like they are focusing on larger accounts now |
Just to say I watched a TV programme on their cider production (discovery channel) and think you will find that they produce their own CO2 and may in fact be free of external CO2 needs. Whether that extends to tennants or not I can't say.
Not in here but do like the Company. |
This talks about the Summer period. I am looking at now, what is currently happing in the industry and how this may impact future revenues ( share price) |
Just being cautious at the moment
“we have been partly insulated and as a consequence have broadly met customer demand through the peak summer trading period. We continue to work closely with our partners to meet the resurgence in demand”
“Partly” and “broadly”; cover a multitude… I don’t quite take the same conclusion as you AG.
The gas situation at the moment will also inevitably hit CO2 supplies in the drink industry and I want to see how it plays out.
Small holding at the moment. As you know I am a supporter of CCR… just think there may be an entry price this year which is preferable.
Good luck |
This inverse H&S looks to be playing out - early days but if we break the neckline around 250p in the coming weeks, this should progress back towards 300p |
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