Profits fall 9.5% at Magners cider maker C&C

By Michelle Perrett contact

- Last updated on GMT

Difficult trading conditions have hit sales for cider maker C&C
Difficult trading conditions have hit sales for cider maker C&C

Related tags: Operating profit, Generally accepted accounting principles

Magners producer C&C has reported “difficult trading conditions” in its core markets as operating profit fell 9.5% to 62.2M in the six months to August 31 2015.

The company said its core divisions were placed under pressure by increased competition in Ireland, changes in drink driving legislation in Scotland and adverse weather conditions.

The Irish business recorded a 12.3% fall in like-for-like net revenue and 18.9% decline in operating profit. Similarly in Scotland, a 9.8% fall in like-for-like revenue drove an 11.9% dip in operating profit. The company said it was “continuing to review acquisition opportunities”.

Positives

“Positively, the reception to our new brands such as Heverlee and Menebrea, access to the Drygate range and the launch of our new craft cider, Dowds Lane Big Vat cider to complement our Five Lamps craft beer in Ireland has been good,”​ said Stephen Glancey, C&C Group chief executive.

“Performance in our export business was excellent, with 31% earnings growth fuelled by Magners, Tennent’s and Shepton brands.

“We expect improved performance in Ireland and Scotland as we move through the second half and into​ [financial year 2017] underpinned by ongoing cost saving initiatives and sustained brand investment.”

 

Related topics: Drinks

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