IRELAND: C&C Group toasts foreign Magners uptake for FY rises
- FY net profits jump by 37% to EUR97.5m (US$124m)
- Operating profits for year to end of February also up, by 30.5% to EUR116m
- Net sales slip by 5.7% to EUR480.8m
- Magners cider performs well in UK, but NA and Australia drive export growth
C&C Group issued its full-year results today
C&C Group has reported a “robust” full year as net profits climbed and Magners Cider found growth in turbulent markets.
The Irish drinks company said today (16 May) that net profits for the year to the end of February leapt by 37% to EUR97.5m (US$124m). Operating profits were also up year-on-year, rising by 30.5% to EUR116m. Net sales decreased by 5.7% to EUR480.8m.
“This has been a robust year for the group,” said C&C Group CEO Stephen Glancey. “In our domestic markets, our brands and businesses performed well against a tough economic backdrop. Maintaining and developing our core domestic businesses has been a key objective, alongside brand innovation and international development. We are also building momentum across several markets in our international business.
“Our business model seeks growth through our brand-market combination, combining brand investment with a focus on local markets. In a challenging economic environment in Ireland and the UK, the group’s results for the year demonstrate the resilience of this model.”
A key indicator of the results was the strong performance of C&C Group's core brand Magners. The cider posted a 28.3% export volume growth driven by North America and Australia and had positive revenue growth (4.1%) in the UK for the first time in five years. The company said three new flavours will be launched in the UK under the Magners Specials range in the second half of this year.
The gains were partly offset by weaker figures for C&C Group's other cider brand, Gaymers, which lost 27% volume and 22.1% net revenue in the UK year-on-year. The company blamed unprofitable own-label contracts and category premiumisation for the decreases.
Net revenue for C&C Group's cider sales in Ireland dropped 8.5% to EUR91.5m compared to the year before.
Glancey said that, while the company remains cautious about near-term prospects “the continuing global growth of the cider category, and C&C’s unique position within the sector, underscore our belief in the prospects of our business”.
“C&C’s balance sheet strength and free cash flow characteristics will enable us to capitalise on organic and acquisition growth opportunities,” he said.
Speaking on Irish radio, Glancey dismissed speculation that the company is a takeover target, the Irish Times reported.
C&C Group's share price was down by 2.57% in early trading.
To read the company's official announcement, click here.
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