Focus - C&C Group FY Performance by Region
Earlier today, C&C Group reported a strong rise in full-year sales, but profits slipped due to costs from integrating acquisitions. Here, just-drinks takes a look at the company's performance by region:
Republic of Ireland
Sales in the region, excluding the Gleeson business, rose by 2.2% to EUR94.2m, off the back of a 1.1% lift in volumes. Operating profits increased by 9.4% to EUR43m. Cider sales rose by 1.7%, with the Bulmers cider brand in “strong health”, the group said. Beer volumes were up 3.7% in the year.
Despite a “complex and challenging integration” for the Gleeson business, which C&C acquired in March last year, the unit reported operating profits of EUR5.2m, off the back of EUR143.1m sales.
The UK (Cider)
Net sales in the region slipped 15% to EUR112.8m, off an 11% slide in volumes. Operating profits dipped 29% to EUR20.7m. UK cider sales for the group fell by 15% due to the “proliferation of new entrants and range extensions”. Magners volumes slipped by 10%.
The UK (Tennent's)
Sales for the unit fell by 1.1% to EUR103.6m, while volumes slipped by 1.6%. Operating profits rose by 18.9% to $34.6m. On-trade volumes grew by 3.1%.
C&C said the unit saw net sales leap by 65.5%, boosted by the integration of Vermont Hard Cider Co into the results, following the acquisition in late 2012. Volumes were up 67.2%, while operating profits jumped 68.4%. “The integration and re-positioning of the US business impacted performance over the past 12 months at a time when competition also intensified,” the company said.
In its export business, volumes rose by 11% year on year and represent 34% of international volumes. The Magners brand grew by 13% with Canada and Australia up 27% and 8% respectively. C&C now exports to 47 countries.
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