Highlights

  • C&C shares fell 9.62% on Friday as FY26 trading came in below the Board’s expectations, down 20.83% over the year.
  • Weak consumer confidence and softer hospitality demand weighed on November–December performance.
  • Adjusted FY26 operating profit expected between EUR 70–73 million, reflecting lower Distribution contributions.
  • Board expects macroeconomic and consumer headwinds to continue into FY27; short-term profit dilution anticipated.

C&C Group Plc (LSE:CCR) shares have declined by 9.62% to GBX 116.23 during the morning session on 23 January 2026, reflecting investor concerns following the company’s latest trading update and Board’s expectations.

The Group has reported that overall trading for FY26 is below the Board’s expectations. Performance during November and early December was notably affected by weak consumer confidence following the UK Budget, coupled with softer demand in the hospitality sector. Shifts in consumer preferences toward beer over wine and spirits also contributed to an adverse product mix.

 While trading over the Christmas fortnight met expectations, early January showed continued softness in consumer demand, which is anticipated to persist for the remainder of the financial year.

Financial Outlook

As a result of subdued volumes and market pressures, C&C now expects adjusted operating profit for FY26 to range between EUR 70 million to 73 million, reflecting lower contributions from the Distribution business.

Despite these headwinds, key brands such as Tennent’s and Bulmers performed well during the festive period and continued to make progress on innovation objectives. The business remains cash generative, with a strong balance sheet, significant liquidity, and continued capital returns, with EUR 92m already returned out of a planned EUR 150m.

Strategic Focus and Medium-Term Plans

Looking ahead, the Board expects the current macroeconomic and consumer headwinds to continue into FY27, with profits likely to remain at a similar level to the current year.

Short-term profit dilution is anticipated due to the timing lag between planned reductions in less profitable Distribution volumes and associated cost reductions.

To support recovery, the Group is prioritising operational simplification, disciplined margin management, and targeted efficiency programmes, alongside strengthening brand equity and innovation.

Despite overall FY26 trading falling below the Board’s expectations, management is taking targeted steps to address market headwinds and changing consumer preferences. Focus remains on operational simplification, disciplined margin management, and strengthening key brands to support profitability and value creation for shareholders over the medium term.

C&C plans to provide a more comprehensive update on trading and its strategic direction in May 2026, as previously disclosed.