IRELAND: C&C Group FY sales strong, but costs drag on profits
- Full-year net profits slip 6.8% to EUR101.1m (US$138.6m)
- Net sales in 12 months to end of February up 30% to EUR620.2m
- Operating profits fall 3.6% to EUR106m
- Ireland, Scotland performance strong, but weaker in US cider market
C&C Group released its full-year results earlier today
C&C Group has seen a healthy rise in full-year sales, but profits fell after a year of “restructuring, integration and consolidation”.
The Tennent's lager owner said today (20 May) that net profits in the 12 months to the end of February, after exceptional items, fell by 6.8% to EUR101.1m (US$138.6m). The group, which also owns the Magners cider brand, said it incurred costs of EUR20.7m in the year from the integration of acquisitions in Ireland, Scotland and the US.
Sales in the 12 months jumped by 30% to EUR620.2m. C&C pointed to a “particularly strong performance” in its domestic market of Ireland, and also Scotland.
Operating profits slipped by 3.6% to EUR106m, after exceptional items. Without exceptional items, however, operating profits were up 10.6% to EUR126.7m.
For the company's international business, operating profits leapt 68% on a constant currency basis. However, in the US, its cider volume growth was behind the category as a whole, due to increased competition.
Looking ahead, Stephen Glancey, C&C's CEO, said: “C&C believes that the fundamentals of its core markets and its position within those markets support continued earnings growth."
He added: “For the current financial year, the objective is to deliver mid-single digit operating profit growth.”
Shares in the company are today trading up 5.85% at EUR4.34.
For the company's full statement, click here.
For a drilldown into C&C's performance regionally, click here.
Click here for coverage of the firm's post-results conference call.
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