A target for the end of the decade

C&C Group Plc (LSE:CCR), the drinks company behind Tennent's lager and Bulmers cider and owner of the distributor Matthew Clark Bibendum, held a Capital Markets day on 24 September 2026. The event set out medium-term financial targets for the first time under its refreshed strategy. The headline target is operating profit of €85 million in the year to February 2030. This article explains what that target means relative to current performance, how the company plans to reach it, and what could get in the way.

Brands and distribution

C&C describes itself as a leading, vertically integrated premium drinks company operating in the UK and Ireland. It runs two businesses with distinct operating models. C&C Brands owns and manufactures drinks including Tennent's, Bulmers, Magners and, more recently, Innis & Gunn. Matthew Clark Bibendum, or MCB, distributes drinks to pubs, bars and restaurants. Roger White is chief executive.

The capital markets day on 24 September 2026

According to the company's announcement, C&C is targeting operating profit of €85 million in FY30 and cumulative free Cash Flow of more than €100 million across FY28 to FY30, after Lease and one-off costs. Its capital allocation framework prioritises a sound balance sheet, with Leverage of 1.0 to 1.5 times net Debt to EBITDA before IFRS 16, followed by organic investment, a sustainable and progressive ordinary dividend, and the use of surplus capital for growth, acquisitions or Shareholder returns. The strategy for C&C Brands focuses on Volume growth, while MCB is focused on improving margins. The company said no new trading information was disclosed at the event.

Where the Business stands now

For the year to 28 February 2026, C&C reported net Revenue of €1,569.8 million, down 5.7%, and operating profit before one-off items of €70.5 million, compared with €77.1 million. The branded business grew net revenue 4% to €309.5 million and operating profit 11% to €51.0 million. Distribution revenue fell 8% to €1,260.3 million and its operating profit dropped 37% to €19.5 million, a Margin of 1.5%. Net debt excluding leases rose to €121.4 million, or 1.6 times leverage, and the full-year Dividend was 5.75 cent per share, alongside a €15.1 million share buyback. Within the brands, Bulmers grew volume 2% and gained on-trade share, while Tennent's launched a Bavarian Pilsner. Distribution revenue in Ireland fell 27% after the group exited a Brand portfolio there, which helps explain part of the decline in that division.

On 11 September 2026, the company reported that net revenue for the six months to 31 August was down 3% at constant currency, with branded revenue up 2% and distribution down 4%. It expected underlying operating profit of €43 million to €44 million for the half. It also agreed to acquire Nectar Imports and Asahi UK's direct distribution operations for nominal consideration, with completion expected in early October 2026. White said the move would bring a significant number of new customers to MCB and deliver immediate scale and efficiency.

Risks and what to watch

Reaching €85 million implies operating profit around a fifth higher than in FY26, which depends largely on lifting margins at MCB, where revenue is shrinking. The company has described the macroeconomic environment as unstable, and the Christmas trading period remains ahead. Integrating the Asahi UK distribution customers will also need careful execution. Leverage of 1.6 times at the last year end, slightly above the new target range, limits room for setbacks.

Conclusion

C&C set a €85 million FY30 operating profit target, supported by a capital allocation framework that puts Balance Sheet strength first. The figure is a target, not a forecast, and depends on brands continuing to grow while MCB's margins recover. The half-year results and the integration of the Asahi distribution business will provide the first real evidence.