Irish beverage group C&C today reported operating profits of €125.2m for the year to the end of February 2008, a fall of 37% on the previous year. The drop mainly relates to a plunge in sales of its Magners cider brand in the UK.
Overall revenue for the year fell 8% to €679m as cider sales volumes declined by 11%. Magners volumes fell 15%, while its Irish brand Bulmers fell 4%.
C&C increased its spending on marketing its cider brands by 41% to €68m during the year as part of a series of measures to improve its performance. It has also slashed 50 jobs as part of a cost-cutting programme which it said today is "substantially complete".
C&C said that its performance in Ireland and the UK in the first months of the new financial year has been affected by weak market conditions and poor weather, but it expects revenue growth "from the second quarter onwards". It also said that it expects "modest" overall sales growth for the year.
The company says it plans to continue market tests for Magners in Barcelona and Munich. Revenue at C&C's spirits division rose 12% to €79m, but profits fell 5% to €16.7m.
Net profit before exceptional charges fell 42% to €103.3m. Adjusted earnings per share were down 41% to 32.2 cent and a final dividend of 15 cent per share will be paid, giving a total of 27 cent for the year.
Maurice Pratt, C&C Group Chief Executive Officer commented, “In 2008/09 we expect to stabilise the Group’s financial and market performance, and, to deliver growth through the benefits of a streamlined organisation; cost reduction programme; and a series of marketing initiatives.”
Full Results
