C&C expects 9.5% drop in profit

C&C expects 9.5% drop in profit
C&C brands.

Geoff Percival

Cider and lager maker C&C has said operating profits for its recently completed financial year are set to be down by around 9.5% to €86m and that it continues to see challenging trading conditions, particularly in its home market.

The Dublin-headquartered maker of twin cider brands Bulmers and Magners, and Tennent’s lager said, in a trading update, that second half earnings before interest and tax (Ebit) fell by around 10% in the second half of the year, following on from an 8.3% decrease in the first half.

C&C is set to publish its results for the 12 months to the end of February in May. Regarding the Irish market it said trading remains “highly competitive”, with Bulmers sales volumes down 6%, although the brand grew its share of the off-trade. That said, C&C expects its Irish performance to improve next year.

In the UK — where the outlook remains challenging for consumer spending — C&C said the market which it serves is proving “resilient”. The group last year acquired a 47% stake in pub group Admiral Taverns and extended its distribution deal with brewing giant AB InBev to improve its route-to-market.

However, a currency translation of €3m and one-off impacts relating to that AB InBev deal negatively impacted on last year’s profitability.

C&C’s shares managed to inch up yesterday, however, as the company said trading and cash generation for the year had broadly been in line with expectations.

“With a free cash flow yield of 7.1% and a dividend yield of 5.3%, we believe the shares are undervalued,” said Davy.

More in this Section

One in four planning Christmas shopping trip outside state - AAOne in four planning Christmas shopping trip outside state - AA

Tech firm Horizon8 picks Cork as Europe HQTech firm Horizon8 picks Cork as Europe HQ

Abbey eyes more Irish work as profits fallAbbey eyes more Irish work as profits fall

Providence shares see bounce on Tony O’Reilly exitProvidence shares see bounce on Tony O’Reilly exit


Overshadowed by its giant neighbours it may be, but the smallest of the main Blasket islands, Beginish, is no less impressive in its own right.The Islands of Ireland: The miracle of Beginish

‘The days of our years are threescore years and ten — Psalm 90How to tell an animal’s age in a heartbeat

We often hear how nature will do well, even come back from the brink of extinction, if given a chance and some human help.Birds of prey on the rise

In our country we still have places that bear no evidence of disturbance by man, that are in their pristine state and rich with all the elements that feed the spirit and deliver us into the world beyond the skin of the time and circumstances we live in.Unique ambience of Dursey Island under threat

More From The Irish Examiner