C&C, the cider manufacturer, today announced its interim results for the six months ended 31 August, 2008.  It also announced the resignation of it CEO Maurice Pratt.

C&C reported a fall of 0.7% in operating profits to €66.5m for the six months to the end of August. The results were in line with expectations.

Revenue fell 13% to €302.4m as cider sales fell by 12%, but pre-tax profits were up to €65.1m, helped by an exceptional gain of €5m from currency contracts. An interim dividend of six cent will be paid.

The company said current trends in the cider market would lead to a 'material' drop in operating profits for the full year. Poor weather and weaker economic conditions have hit sales, and C&C is now beginning an 'in-depth' review of its marketing strategy in Britain.

Cider revenues were down 12.6% to just under €230m, while profits were 1.6% lower at €57.2m. Bulmers and Magners sales volumes each fell by 12%, though cost-cutting measures lifted margins. Revenue in the spirits division rose by 5.4% to €41.3m, while profits were up 1% to €8.9m.

Maurice Pratt commented "We have initiated a fundamental review of our strategy within Great Britain. I believe now is the time to step down to allow a newly appointed CEO to devise and to execute a new strategy for the Group's profitable growth." 

Commenting on his decision to resign Maurice Pratt said "The past two years have been very challenging for C&C Group and despite our best efforts we have not achieved our ambitions for the business. As Chief Executive I have to be accountable and take responsibility for business performance. The company has to take important strategic choices and I have therefore decided it is time to stand aside and allow a new CEO to bring fresh thinking and impetus to the business. It is my clear view that this course of action is in the best interest of the shareholders and employees of C&C.

Since I joined the company I have worked with the management team to build our Brand portfolio in cider, spirits and liqueurs. Despite our clear trading difficulties Magners is the market leader for premium cider in the UK. I want to take this opportunity to thank my management colleagues and all of the employees of C&C for their remarkable commitment during what have been extremely difficult times. I am fully committed to continue working with the Board and management to ensure a smooth transition to a new CEO."  

Tony O' Brien, Chairman of C&C said "The Board of C&C fully respects Maurice Pratt's decision to resign as Chief Executive. Maurice has given seven years of unstinting commitment to the company and his experience and drive has been invaluable. His time as CEO has been marked by both successes and challenges for the company and on behalf of the Board, management and employees I want to thank him for his loyalty and dedication throughout. We wish him every success for the future".

Results details

C&C shares are up 7.56% in Dublin.

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