IRELAND: C&C Group H1 sales back on track, profits slide
- H1 net profits down 23% to EUR42m (US$57.7m)
- Net sales up 28% to EUR336.7m
- Operating profits down 16% to EUR55.6m
- Total volumes up 1.4%
C&C Group reported its Q2 and H1 results today
C&C Group has posted a jump in first-half sales as better weather in Ireland and the UK helped the Magners producer bounce back from a difficult Q1.
Net profits fell 23% to EUR42m (US$57.7m) in the six months to the end of August, the Ireland-based company said today (30 October). Net sales rose by 28% to EUR336.7m over the same period, while operating profits dropped by 16% to EUR55.6m.
First-half profits were dented EUR15.5m in exceptionals, including EUR5.2m in restructuring costs. There was also EUR3.1m in acquisition costs from the purchase of the Gleeson Group in March and Vermont Hard Cider Company in December.
The results were an improvement on first-quarter numbers, when “unseasonably cold weather” saw sales in Ireland and the UK drop by 13%. Volumes were also hit in Q1, with cider down 13% and 22% in Ireland and the UK respectively.
Total first-half volumes announced today were up slightly (1.4%), while cider in Ireland returned to growth, with volumes up 2.5%. Cider volumes in the UK were still down but by just 14% as better Q2 weather saw demand pick up, C&C Group said.
“Following a weak first quarter, the group recorded an improved performance in each of our domestic markets in the second quarter aided by warmer summer weather,” C&C Group CEO Stephen Glancey said. “While we continue to focus on operating efficiency, operating expenses in the period include significant investment in future areas of growth including Shepton Mallet Cider Mill and our US cider business.”
The company's international unit delivered a 77% volume jump in H1 and a 73% sales increase. Vermont's Woodchuck brand, which had been accused by one analyst of getting off to a slow start, posted a 3% volumes rise.
Looking ahead, the company reaffirmed its expectations that operating profits for the year will be between EUR125m (US$190m) and EUR132m, a rise of 15-21% on the past financial year.
Shares in C&C were this morning trading up by 3.45% at EUR4.14.
To read the company's official results, click here.
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