Shares in C&C Group PLC (LSE:CCR) dribbled 16% lower after the maker of Bulmers and Magners cider and Tennent's lager issued a trading update, including a more cautious outlook on near-term trading conditions.
Operating profits for the year to February 2025 are now expected to be around £76 -78 million, which was slightly analyst estimates but markedly ahead of the €60 million reported in the corresponding period last year.
In C&C's outlook the brewer says it has "some exciting plans for our brands", including the relaunch of Magners as the brand is now back under full management control in the UK, but it expects to see "continued uncertainty for consumers alongside the impact of the well documented challenges of the hospitality sector".
Earnings for the year to Feb 26 are expected to be "marginally ahead", which analyst Greg Johnson at Shore Capital said compared to his and market expectations of a circa €10 million improvement.
"We would anticipate lowering our FY25F operating profit estimate to c€78-80m to reflect this outlook, with the shortfall likely to be all in GB Distribution," the analyst said.
"The statement reiterated previously stated objective to deliver operating profit of €100m, although the time frame is likely to be stretched out beyond the next three years."