Tennent’s owner C&C has spring in step

Tennent’s owner C&C Group said it had made a “solid start” to its new financial year as it outlined plans to make its business greener.

Tennents, which is brewed in Glasgow, remains Scotlands best-selling lager brand. Picture: Andy Buchanan

The Irish firm, which is also a major cider supplier via the Bulmers and Magners brands, said in a stock market update that trading since the start of March had been in line with current market expectations.

The group repeated its target of double-digit earnings per share growth this year.

It also said it was targeting carbon neutrality in manufacturing by 2025 in Scotland and across all markets it is pledging to eliminate plastic by the same date.

This year, C&C is investing a further £2.7 million in CO2 capture capability at the Tennent’s Wellpark brewery site in Glasgow.

Group chief executive Stephen Glancey told investors: “[Financial year] FY2019 was a transformational year for the group.

“The acquisition and subsequent performance of Matthew Clark & Bibendum contributed to earnings growth of over 20 per cent. Reflecting the inherent strength of the C&C business today, our objective is to again deliver double-digit earnings per share (EPS) growth in FY20.

“Thereafter, we will target EPS growth in a mid to high single digit range.”

Investec Securities analyst Ian Hunter, who has a “buy” rating on the shares, noted: “C&C continues to trade at what we believe to be an unwarranted discount to its brewer and distribution peers.”

C&C is also seeking inclusion in the FTSE UK Index series.