Results reading: Half-year Results
The results confirm the 11 September trading update: operating profit of €43.4m sits inside the guided €43-44m range, and full-year guidance is unchanged. The new information is the lower interim dividend (2.00c against 2.08c), profit growth that comes entirely from Branded while Distribution profit fell, and a cash picture helped by working capital and a larger receivables facility draw.
What changed against what was known
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Worse
The interim dividend was cut to 2.00 cent from 2.08 cent, even though the Board still intends a 'progressive' full-year dividend.
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New
The whole of the group's €1.5m operating profit increase came from Branded (+€2.5m to €29.2m). Distribution profit fell 6.6% to €14.2m and its margin was flat at 2.3%, so the group's 40 bps margin gain rests on Branded.
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Better
Branded constant-currency revenue growth is reported at 3%, slightly better than the 2% in the trading update.
Then · 11 Sep 2026 · Acquisition and Trading Update“Net Revenues were 3%* below last year, reflecting growth of 2%* in Branded revenues offset by decline of 4%* in Distribution revenues.” -
New
Free cash flow is now defined after lease payments, with the prior year restated. The new €100m cumulative FY2028-30 target is therefore on a stricter basis than the old definition.
“As set out in the Capital Markets Day presentation on 24 September 2026, the Group has updated its definition of Free Cash Flow 4 and Underlying Free Cash Flow 4 to include the cash outflows in respect of lease payments.”
2 points only confirm what the company said before
- Half-year operating profit of €43.4m is inside the guided range, so the headline result is confirmed rather than new. “Operating profit3 up 4% to €43.4m, underpinned by operating margin3 improvement of 40 bps to 5.5%”
- The Asahi UK wholesale acquisition completed on 20 October, a little after the 'early October' timing given in September. Customer and supplier onboarding into MCB is under way. “The transaction completed on 20 October 2026 and the customer and supplier transition is on track and progressing well.”
What the notes say – not in the headline numbers
Underlying free cash flow rose to €36.9m from €31.2m, helped by a €2.4m working capital inflow against a €4.9m outflow a year earlier. The receivables securitisation draw was €136.1m, up from €104.2m at February 2026.
Part of the cash improvement comes from drawing more on a facility that is excluded from the reported net debt of €113.7m.
“The outflow on receivables is typically softened in the first half of each year through additional draw down on the receivables facility at the half-year balance sheet, compared to the full-year.”The €136.1m securitisation draw sits outside net debt.
Reported net debt and the 1.4x leverage understate the funding the group actually relies on.
“This is a working capital facility; the amounts drawn down are not included in net debt.”Exceptional cash outflow was €11.8m against €6.9m a year earlier, including €5.7m for FY2026 charges. Free cash flow after exceptionals was only €25.1m (HY2026: €24.3m) against underlying €36.9m.
Restructuring costs are recurring and take much of the underlying cash improvement, leaving little left over after dividends.
“From a cash perspective, the exceptional cash outflow was €11.8m (HY2026: €6.9m).”Net debt fell €7.7m since February, but leverage is 1.4x against 1.1x a year earlier.
Leverage is higher than a year ago despite lower net debt, which points to weaker earnings over the last twelve months.
“Leverage, on a pre-IFRS 16 basis, as of 31 August 2026 was 1.4x and compares to 1.6x at 28 February 2026 and 1.1x at 31 August 2025.”Brands and goodwill were last tested at 28 February 2026 and will not be formally retested until 28 February 2027. No headroom figures or assumptions are given in the half-year notes.
With Distribution revenue and profit falling, any impairment would only surface at the year-end test.
“The value of brands and goodwill considered to have an indefinite life were assessed for impairment at 28 February 2026 and, given no material changes in circumstances since that date, they will be formally assessed again at 28 February 2027.”Promises management made Track record →
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Not addressed
FY2024 underlying operating profit of about €60m, in line with expectations.
FY2024 target is long past and is not referred to in this half-year report.
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Delayed
Implement data integration platform and accounting reconciliation tools by end of FY2026.
Still described as 'progress' in H1 FY2027, so the end-FY2026 (Feb 2026) completion date was not met.
“This included progress on data integration and automated accounting reconciliation, building on the rollout of CRM capability and providing foundations to support more effective decisions on pricing, range, customer profitability and logistics.” -
Not addressed
Engage with shareholders who opposed Resolution 8.
No mention of shareholder engagement on Resolution 8 in the material provided.
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On track
Innis & Gunn acquisition to make a small positive contribution in FY27.
Innis & Gunn is already contributing positively to Branded revenue. No profit figure is given for it.
“Growth was led by Tennent’s and Bulmers, supported by favourable weather, the FIFA World Cup, focused brand investment and innovation, together with a positive contribution from Innis & Gunn following its acquisition in March.” -
On track
Meet FY2027 financial objectives and make substantial strategic progress.
First half in line; full-year guidance repeated, with the Christmas period still to come.
“We remain on track to achieve full-year operating profit in line with market expectations, albeit noting that the market conditions remain volatile and we have the important Christmas trading period ahead of us.” -
On track
Asahi UK: majority of transitions in coming weeks; small positive FY27 contribution to MCB.
Completed about two weeks after 'early October'; transition under way. No figures yet on how much of it is done.
“The transaction completed on 20 October 2026 and the customer and supplier transition is on track and progressing well.” -
On track
Achieve €85m operating profit by FY30.
Target restated, with nothing new on delivery. FY2026 operating profit was €70.5m.
“The medium-term framework targets operating profit3 of €85m in FY2030 and cumulative Free Cash Flow4 of more than €100m across FY2028 to FY2030.” -
On track
Generate over €100m cumulative free cash flow over FY28-FY30.
Target restated; free cash flow is now defined after lease payments.
“The medium-term framework targets operating profit3 of €85m in FY2030 and cumulative Free Cash Flow4 of more than €100m across FY2028 to FY2030.”
Watch at the next report
- Whether Christmas trading delivers full-year operating profit in line with market expectations.
- Pace and cost of onboarding Asahi UK customers into MCB, and whether MCB margin improves from 2.3%.
- Whether Distribution revenue declines ease, and whether the securitisation draw and leverage (1.4x) move back toward last year's levels.
Read 28 Oct 2026 against the last statement, the previous results and the open promises. Quotes are the company's words; the rest is our reading. Not investment advice.