Pre-tax profit fall at C&C

C&C notes a “slowing of volume shift from the on-trade to the off-trade. In the 12 months to the end of February 2013, LAD volume in the on-trade declined by 3% whilst the off-trade declined by 1%".

Sales volumes of Long Alcoholic Drinks declined by 2% here in the 12 months to the end of February 2013 according to C&C Group’s Annual Report published recently.

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The C&C Group’s Operating Profits fell 11.9% to €38.5 million in Ireland in the year to February 28th 2013 on an income down by 6.1% to €133.8 million from €142.5 million the previous year.

In a cider market which grew by 1% C&C’s cider volumes fell 3.2% here with net cider revenues down 9.1% to €92.2 million for 2012’s €101.4 million.

The Group’s beer volumes here grew 11.1% in a beer market in decline by 2% in the same period. Beer now represents 16.3% of C&C Group’s  portfolio volume in RoI.

However the company notes a “slowing of volume shift from the on-trade to the off-trade. In the 12 months to the end of February 2013, LAD volume in the on-trade declined by 3% whilst the off-trade declined by 1%".

As a whole, the C&C Group returned an Operating Profit of €109.3 million (after exceptional items of €4.6 million), down 5.8%, in the year to February 28th 2013 on revenues up 1% to €724.1 million.

At €104.4 million, pre-tax profits fell 5.9% from the previous year’s €110.9 million.

The Group describes its financial performance in the UK and Ireland as “resilient” despite a difficult trading environment in both markets.

And according to the recently-announced results for the first half of its financial year to the end of August, C&C acquisition the Gleeson Group contributed €101.2 million to C&C Group’s overall H1 revenue figure of €181.2 million here in RoI. Excluding the Gleeson Group acquisition revenue was up 8.7% to €80 million while volume increased 2.7% to 347,000 Hectolitres.

This period saw C&C Group’s overall volumes drop 4.6% (when the Gleesons and Vermont Hard Cider Company acquisitions are excluded) accompanied by a 10.7% drop in revenues to €235.3 million.

Overall net sales were up at C&C Group by 33.3% on a constant currency basis to €252.5 million.

The brewer is also investing in a craft brewery on its site in Clonmel to participate in the medium term opportunity presented by Irish craft beers and intends brewing for other smaller craft brewers wishing to extend their brewing capacity thus utilising C&C’s own spare capacity at the Clonmel plant.

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