Focus - C&C Group's FY Performance by Region
C&C Group released its results today
Earlier today, C&C Group reported a rise in full-year sales. But, the company slipped into the red as impairment charges damaged the bottom line. Here, just-drinks takes a look at the company's performance by region:
Net sales in the region fell by 2% to EUR286.9m despite a 0.5% volumes increase. Operating profits were up 2% to EUR59.1m. Off-trade volumes were up 3% compared to a 2% drop in the on-trade. Sales from C&C's Gleeson unit were down for the year because of changes in a number of distribution agreements. Cider net sales in Ireland decreased by 7.5%, of which volumes accounted for 4.1% and price/mix for 3.4%. Meanwhile, beer volumes rose, C&C said, without giving further details.
Net sales in Scotland jumped by 61% to EUR223.6m thanks in part to the acquisition of wholesaler Wallaces Express last year. Operating profits, however, were up only 2% to EUR39.2m. C&C said operating profits would have been stronger but for the effect of stricter drink-driving regulations in the country. The company, meanwhile, said the Tennent's beer brand is in "robust health", with growth in the country's on- and off-trade.
- C&C Brands
The unit performed poorly, with net sales down 18% to EUR107m and operating profits down 38% to EUR10.4m. Magners was hit by "retailer and competitive headwinds", C&C said, with volumes down 14%. K Cider lost 37% in volumes while Shepton Mallet Cider Mill-branded volumes were down 1% versus a decline of 18% the previous year.
"The group does not envisage any improvement in the competitive environment in the short- to medium-term," C&C said.
- North America
Net sales in the region were down by 20% to EUR45.3m and operating profits slumped by 86% to EUR1.5m. C&C blamed a drop in demand for its cider brands as rivals increased their investment in the growing category.
"Our share of the category has come under pressure and Woodchuck brand depletions were down 15%," the company said.
Shipments of the Magners brand grew by 2%, despite competitive pressure from new entrants, C&C said. Pricing in the category overall "remained relatively stable" with a price-point similar to high-end craft beer and "well above" the beer category average, it added.
Net sales from the international division fell by 4% to EUR21.1m while operating profits dropped by 8% to EUR4.8m. Performance was impacted by Australia, where shipment volumes declined 61% and net sales fell by 70%. Volumes excluding Australia grew by 17%.
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