C&C Group mulls deals after volatile half

Tennent’s owner C&C Group said it is well-placed to snap up assets arising from industry consolidation after posting a drop in first-half earnings.

The Dublin-based group said the decrease came amid “volatility” in consumer behaviour after the Brexit vote and subsequent fall in sterling’s value.

Group chief executive Stephen Glancey told The Scotsman that despite such challenges and the period being somewhat “unpredictable”, the company is “quite happy” with the first half.

Operating profit before one-off items dropped 7.9 per cent to €55.1 million (£49.2m) for the six months to end-august, dragged in part by higher marketing spend. “We’ve done the right thing, we think, long term which is invest behind our brands,” Glancey said:

He said the “fizz is back in Magners” with volumes up by 11 per cent, as group sales came in 8.1 per cent lower at €307m, with a €24.4m dent from the fall in the value of the pound. In terms of potential M&A activity, Glancey said: “We think we’re quite wellpositioned 2 Tennent’s ranks as Scotland’s top-selling lager because we have low debt, we’ve got a very conservative balance sheet, to buy any assets that come up. Equally, as new people come to Europe and look for alliances, we’re well-positioned to support them with route to market in the UK and Ireland.”

C&C also welcomed the Court of Session’s ruling to back the Scottish Government’s plans for a minimum price of 50p per unit of alcohol.

Looking ahead, Glancey said the outlook is “cautious”, but he stressed the group’s capability of “weathering” political and economic challenges.