IRELAND: C&C reports drop in first half
C&C has reported a fall of in its first half earnings due to poor weather and increasing costs.
Today (10 October), the troubled Irish drinks group posted a 39% drop in basic adjusted earnings per share to EUR0.175. Operating profit dropped 33%, just above analysts' forecasts of EUR66.8m, to EUR67m.
Revenue for the period was flat at EUR375.6m and the group's branded cider volumes declined by 1%. Magners volumes increased by 2% year-on-year and, in the UK, on-trade distribution was 66% in July compared with 67% in February.
C&C's CEO Maurice Pratt said: "The financial performance reflects a number of factors such as exceptionally poor summer weather, increased competition, and additional costs in marketing and cider manufacturing capacity."
While the company said it expects good revenue growth across its spirits & liqueurs division, increased marketing investment and rising raw material costs would lead to pressure on margins going forward.
C&C noted that its main focus for the short-term will be to push consumer marketing across the UK market and enhance its position in the country. At the same time, the group will look to reduce costs, which, it said, would involve "restructuring the company".
More details on this will be announced by the end of next month, C&C concluded.
Sectors: Beer & cider
The dramatic rise of Magners cider was perhaps the biggest brand marketing success story in the UK drinks market in recent years. But, Chris Brook-Carter writes, bad weather and heightened competition...
- Spirits - Where does 'Craft' End and 'Mass' Begin?
- Brewers go Crazy over Flavoured Malt “Cocktails”
- What do A-B InBev results mean for SABMiller deal?
- Anheuser-Busch InBev's FY Performance by Region
- Much Work to do on Packaging in the US
- Diageo "smart bottle" targets consumers at home
- Tesco reinstates Dan Jago following suspension
- Suntory whiskey seeks to "eclipse" Diageo, Pernod
- Tough US hits Mast-Jagermeister volumes in 2014
- George Clooney launches Tequila Casamigos in UK
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends research
- Wine, 2014 and the future
- Spirits and RTDs, 2014 and the future
- Global RTD/RTS insights - market forecasts, product innovation and consumer trends research
- Beam Suntory Inc. - Strategy and SWOT Report