IRELAND: C&C Group sees FY profits fall
- Net profits down by 7.3% to EUR88.7m (US$114.5m)
- Net sales mainly flat, down by 0.8% to EUR476.9m
- Operating profits fall by 5.7% to EUR109.3m
- International volumes up by 55%
C&C Group posted its full-year results today
C&C Group has posted a dip in full-year profits as sales and volumes growth from international acquisitions failed to offset domestic struggles.
Net profits fell by 7.3% to EUR88.7m (US$114.5m) in the 12 months to the end of February, the Dublin-based company said today (15 May). Net sales stayed largely flat, down by 0.8% to EUR476.9m over the same period while operating profits slipped by 5.7% to EUR109.3m.
Volumes also fell, down 4.7% on financial-year 2011, with UK cider volumes down 15% due to poor weather. The drop was partially offset by a 55% rise in international volumes, as exports edged up to 9.6% of total branded volumes.
“While it has not been an easy year for our core cider brands, with poor weather and increased competition, particularly in the UK, the second half did bring some trading stability,” C&C Group CEO Stephen Glancey said.
“We have had an excellent contribution from the Tennent’s brand both in domestic and international markets providing some balance to the increased competition within UK cider.”
International sales were boosted by the takeover of Vermont Hard Cider Company, completed in January, and the Hornsby's cider brand in 2011. On a constant currency basis international net sales jumped by 50% and operating profits climbed by 34%.
It was a different story in Ireland, where net sales fell by 9% and operating profits by 12%. UK cider net sales were down by 20% with operating profits in the category dropping by 16%.
This year's results stand in stark contract to last year, when the booming Magners brand helped push C&C profits up 37%, despite a slight fall in net sales.
This year, Magner's growth slowed to 3.9%, and C&C admitted the integration of Hornsby's into its Magner's US distribution network had “proved to be a resource hungry project”.
Looking ahead, Glancey warned the coming financial year “will inevitably be a transition period as we integrate our recently acquired businesses”.
C&C Group's shares were up slightly, by 2%, in morning trading.
To read the company's official statement, click here.
For a full round-up of just-drinks' coverage of C&C Group's FY performance, click here.
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