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.

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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.