Profits rise by 2.4% at C&C amid a challenging year in cider market
Print15 May 2013
Cider and beer group C&C has reported a rise in operating profit of 2.4% to €113.9m for the full year. The increase was in line with expectations as net revenue declined 0.8% to €476.9m for the year to the end of February.
The company revealed that a strong performance by its Tennent’s beer brand had helped to offset weakness in its core cider brands of Bulmers and Magners in the UK and Ireland.
"Our results are in line with stated guidance and while it has not been an easy year for our core cider brands, with poor weather and increased competition, particularly in the UK, the second half did bring some trading stability in Ireland," said Stephen Glancey, chief executive of C&C.
"We have had an excellent contribution from the Tennent’s brand both in domestic and international markets providing some balance to the increased competition within UK cider. Our international business delivered strong growth with volumes increasing by over 55% in the year."
C&C bought into the US cider market last year with the acquisition of the Vermont Hard Cider company for €230.9 million. Glancey said: "The period was defined by two significant investments. In the USA we acquired the Vermont Hard Cider Company, increasing the Group’s exposure to an emerging category in a major potential market. Then in Ireland, just after the year end, we acquired the leading wholesaler Gleesons. This demonstrates our long term belief in Ireland as a place to invest and gives C&C a platform for domestic growth for the first time in many years."
The company has proposed a final dividend increase of 5.6% to 4.75 cent per share, delivering 7.1% growth in full-year dividend to 8.75 cent per share.
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