C&C positive in full-year profits prediction
Drinks group C&C in an interim management statement issued this morning said it expects operating profits for the full financial year to be in the range of €112m to €118m.
The company said that while poor weather in the UK and Ireland resulted in weak cider numbers for the first quarter, Tennent’s performed well in the difficult trading conditions.
"The core cider business will see an increase in commercial support and brand activity over the next nine months and we anticipate a recovery in volume and revenue," the company said.
“Despite a challenging quarter and tough consumer backdrop, we are confident that our resilient business model and strong brand market combinations will deliver continued earnings growth for the full year and maintain our business momentum," commented CEO Stephen Glancey.
The company said its total Irish volumes were down 1.1%, with a 5.4% decline in cider volumes offset by a 29.6% increase in beer volumes.
"The month of April was particularly difficult with volumes down 5% across both channels and off-trade price deflation of over 6%," the company elaborated.
" Volumes improved with a spell of good weather towards the end of May and the beginning of key summer events, highlighting the resilience of the Bulmers brand."
The company said Tennent’s continues to grow volume in the Irish market.
In the UK, total cider volumes (Magners and Gaymers brands) were down 21.6% with net revenue declining by 25.1%.
"Looking forward, levels of support and commercial activity around the brand (Magners) will step up and we expect to see volume and revenue recover as the year progresses," the company however said.
The company is holding its AGM in Dublin today.
