UK/IRELAND: Summer calender gives hope to C&C Group - analyst
C&C Group has EUR68.3m (US$108.8) in ready cash
C&C Group's underlying weaknesses may in part be shored up by a summer of big events, an analyst has said.
The group's full-year results, reported earlier today, are mostly in line with expectations, according to Canaccord Genuity's Wayne Brown, with lacklustre volumes down 10.5%. Shares are likely to fall and risks remain high and toward the downside, Brown said.
The company's EUR68.3m (US$108.8) cash on hand was its greatest protection, Brown noted, although he criticised C&C's “so-far pedestrian pace of its M&A strategy”.
“After three years to explore its M&A strategy, we feel there is a lack of opportunity to drive significant value,” he said.
In a conference call with investors today, C&C Group CEO Stephen Glancey said his company is on the hunt for acquisitions, possibly in the soft drinks market.
Brown said C&C's current trading has been poor because of bad weather in its larger markets of the UK and Ireland, but added that the company's second quarter from June to August will be a likely catalyst, thanks to a crowded summer-events calendar.
“[This] is the high point for cider volumes, comparatives ease and there is the diamond jubilee, Euro [football] championships and Olympics, which should help underlying weakness,” he said.
The reports out of India late last week that the chairman of The UB Group has been hit with a warrant for his arrest will have been greeted with raised eyebrows by many in our industry - not least, th...
- What's so special about Islay anyway? - Comment
- Six key trends for alcoholic drinks in 2016
- What do Bourbon and craft beer have in common?
- Ten things to know about spirits in the US
- Aus wine industry pays price for past failures
- Alcohol industry warning over Kroger plan
- SABMiller hits back in UK corporation tax row
- Diageo's Orphan Barrel The Gifted Horse - NPD
- Suntory bids for Lucozade, Ribena Nigerian network
- American rye whiskey sales leap 600% in five years
- What Next for Beer and Brewers Following the MegaBrew Deal?
- Global travel retail insights - market forecasts, product innovation and consumer trends
- Global Beer Trends 2015 : Global Beer Trends and Long-term Forecasts
- Global Whiskey Market 2016-2020
- Global sparkling wine insights - market forecasts, product innovation and consumer trends research