IRELAND: C&C reports drop in first half

By | 10 October 2007

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

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