Drinks group C&C today reported pre-tax profits of €57m for the six months to the end of August, compared with €65m a year earlier.

The group which makes makes Bulmers cider for the Irish market and Magners for the UK,  said revenue for the period was €257.5m, down 10.5% and 6.3% excluding currency losses.

Operating profits before exceptional items were 13.6% lower at €57.4m.

Cider volumes were unchanged but volumes of spirits and liqueurs dropped 15%.

Magners was down 2% in Britain but that was offset by growth in Northern Ireland and the rest of the world.

Against a challenging outlook for 2009/10, current operating profit guidance for the pre-acquisition business - - C&C completed the acquisition of the the businesses of AB Inbev, the brewer of Stella Artois, in Ireland, Northern Ireland and Scotland last month - - remains unchanged

C&C said a restructuring programme - - including 120 lay-offs and a pay freeze - - was on track to deliver €5 of savings. An interim dividend of three cent is to be paid.

John Dunsmore, CEO commented: "Following a positive start to the first half, trading conditions in August and September have been more challenging. However, we remain on track to deliver on the objective of stabilised volumes and a full year operating profit outcome in line with our stated guidance."

He added: "We expressed our intention to invest an additional €8m (of incremental profit growth) behind the Group's cider brands. Following the acquisition of the Tennent's business, and in light of recent trading conditions we will now review overall marketing investment and deploy our marketing spend where we believe we can get the best returns for shareholders."

Dunsmore concluded: "We are very pleased to have completed the acquisition of the Tennent's business. This transaction is an evolution of our stated strategy and clearly enhances the Group's position in the Long Alcoholic Drinks sector. Tennent's is a celebrated brand and is a compelling strategic fit for the Group to develop alongside Magners in Scotland and Northern Ireland. The acquisition presents a great opportunity to strengthen our route to market and broaden our product portfolio by combining our cider brands with some of the world's leading beer brands."

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