Tennent’s owner C&C Group said the UK budget had hit consumer confidence which has seen a shift from wine and spirits to beer.
Trading across the Christmas fortnight was in line with expectations, but in January its had seen continued softness of consumer demand in the market and anticipates this will continue for the rest of the financial year.
The Dublin-based group now anticipates adjusted operating profit to be between €70 million and €73m, reflecting the lower operating profits in the distribution business.
It said: “While the group continued to make strong progress in its key objectives around improving customer service, developing brand execution, innovation and operational efficiency, these actions were not sufficient to offset the combination of subdued market volumes, unfavourable category mix and competitive pricing dynamics across the market.”
Despite these headwinds, the company said its brands performed well over the festive period, and it remains cash generative with a strong balance sheet and commitment to its €150m capital return plan, having already returned €92m.
The outlook for FY27 suggests similar profit levels, with planned reductions in less profitable distribution business, though short-term profit dilution is anticipated due to the lag in cost reduction initiatives.
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