Scottish Lager Giant Faces Share Plunge Amid Hospitality Pressure
Yesterday, the owner of Tennent’s Lager experienced a nearly 20% drop in shares following a profits warning, citing “softer trading” in January and February, as well as “additional pressure” on the hospitality industry due to economic strains and upcoming tax increases in April.
C&C Group, the parent company of Tennent’s Lager and Magners Irish cider, anticipates a profit range of €76 million to €78 million, slightly below their target, amid ongoing consumer uncertainty and industry challenges. Despite this setback, the company remains optimistic about potential profit improvements in 2026 compared to the previous financial year.
Analyst Insights
Greg Johnson from Shore Capital highlighted that while C&C Group’s profit projections slightly lag behind estimates, they still exceed the previous year’s results significantly. The softer trading conditions in the hospitality sector at the beginning of the year, likely influenced by weather-related factors, have impacted the company’s financial performance.
The recent update marks the first under new CEO Roger White, a seasoned industry professional with over two decades of experience. White’s tenure follows a period of upheaval for C&C Group, characterized by costly IT issues, accounting discrepancies, and shareholder activism.
CEO Perspective and Industry Challenges
Reflecting on the company’s past challenges, White expressed cautious optimism about overcoming historical issues and emphasized the importance of customer service and forward-looking strategies. Despite acknowledging ongoing industry difficulties, White underscored the resilience of both the business and its customers, highlighting the potential for growth and innovation.
Looking ahead, White anticipates a challenging year for C&C Group, particularly in light of impending tax changes and rising operational costs. The economic uncertainty, compounded by the persistent cost of living crisis, poses additional hurdles for the hospitality sector, affecting consumer confidence and business operations.
In response to these challenges, White emphasized the company’s commitment to supporting customers and adapting to evolving market conditions. While acknowledging the current economic volatility, White remains confident in the business’s ability to navigate external pressures and deliver positive outcomes in the future.
In conclusion, White emphasized the industry’s resilience and the importance of strategic investments to mitigate the impact of external factors. Despite the immediate market fluctuations, C&C Group remains focused on long-term growth and sustainability, aiming to weather the current economic challenges and emerge stronger in the future.
Shares in C&C Group closed 19% lower, reflecting the market’s response to the recent profit warning and industry pressures. The fluctuating economic landscape and evolving consumer behaviors continue to shape the company’s strategic priorities and operational decisions, underscoring the need for agility and foresight in navigating the current business environment.
