C&C reports “robust” year

Drinks group C&C reported a jump in pre-tax profit to €110.9 million with the publication of its full year financial results.

“This has been a robust year for the Group. In our domestic markets, our brands and businesses performed well against a tough economic backdrop,” said Stephen Glancey, C&C Group CEO.

“Maintaining and developing our core domestic businesses has been a key objective, alongside brand innovation and international development. We are also building momentum across several markets in our international business.”

The company said operating profits were up 9% to €111.2m, in line with guidance, while total revenues for the year fell 4.8% to €480m.

A highlight of the report was that C&C’s Magners brand delivered 28% export volume growth driven by North American and Australian markets.

In Ireland, the group reported “stable earnings” at €44.4 million. Its Irish cider division delivered operating profit of €42.2 million, while operating profit from the group’s beer portfolio increased to €2.2 million.

Glancey added, “We invested in the global growth of cider with the acquisition of the Hornsby’s brand in the US and with the contracting of new distribution agreements in key markets for our core brand, Magners. C&C is now a focused cider-led LAD business.

“While we remain cautious about the near term prospects of our core markets, the continuing global growth of the cider category, and C&C’s unique position within the sector, underscore our belief in the prospects of our business. C&C’s balance sheet strength and free cash flow characteristics will enable us to capitalise on organic and acquisition growth opportunities.”

C&C Group also reported that Tennent’s was continuing to “build momentum across the Scottish market”.

In the year to the end of February, Tennent’s on-trade sales fell by 2% in Scotland. But C&C said volumes in the Scottish on-trade market as a whole fell by 8%.

The company announced a 24% increase in its full year dividend to 8.17 cents per share.