C&C Group plc, a manufacturer, marketer and distributor of branded beverages in Ireland and the UK, today issued an Interim Management Statement for the four months ended 30 June 2008. C&C said that a weak trading performance in June together with continuing unsettled weather and a deteriorating economic backdrop in its principal markets, makes the outlook uncertain.  

Revenue (i) for the four months ended 30 June, 2008 declined by 8% compared with the same period last year. This performance includes a revenue decline of 10%­ for C&C's Cider division and growth of 3% in revenue for Spirits & Liqueurs.

Group operating profit (i) for the period showed an increase on the same period last year, reflecting the improved operating margins arising principally from the cost reduction programme initiated in February 2008.

Cider revenue declined in both UK and Ireland in the period.

The group said that in the UK, Magners overall performance was broadly in line with expectation for the period. Magners Draught was launched in May and after a slow start, due to initial equipment supply difficulties, is now progressing well.

 In the Republic of Ireland, the decline in Cider revenue in the period reflects weak market conditions, particularly in the pub sector.

C&C's current expectation for the half year to 31 August 2008 is that revenue (i) is unlikely to match last year's level but improved operating margins during the period should, at least, offset the impact of revenue decline on operating profit(i).

(i)  Continuing operations - before exceptional items.