C&C looks to boost British sales

MANAGEMENT at drinks group C&C has said the key target for its current financial year is to boost sales growth of Magners cider in Britain, to a level broadly in line with the 5%-10% overall rise in the sector there.

However, the group remains cautious over conditions in its core geographical markets of Ireland and Britain.

The cider-led drinks group which is based in Dublin and Clonmel yesterday reported a return to pre-tax profit for the 12 months to the end of February, with a €78.8 million surplus against a €65.8m loss made in the previous year. Group revenue was up 10.6% to €568.8m.

Although C&C’s net debt rose by as much as 61% last year, to €364.9m; the proposed €300m sale of the group’s spirits and liqueurs division to Scottish group, William Grant will significantly reduce that figure. The sale goes to a shareholder vote on June 17.

C&C’s chief executive John Dunsmore said that management was being risk adverse rather than downbeat when expressing a note of caution on trading conditions both here and in Britain.

He added that it was confident in the group’s brand strengths and trading strategies.

Finance director Stephen Glancey added, however, that the whole of Europe will probably see “very, very volatile trading conditions” for the next four to five years.

He said management would not be looking to make further job cuts in the group’s main cider-making facility in Clonmel, Co Tipperary, where more than 150 jobs were shed last year.

In the first two months of C&C’s current financial year – up to the end of April – the group’s total revenue was down 1.7%, on a year-on-year basis; with cider revenue down 3% (including a 7.8% drop in Ireland).

Management also said it would be aiming to lay the foundations for the international expansion of its cider business over the next year. Its long-term strategy, in that respect, includes targeting territories like Scandinavia, the US and Australia.

C&C’s share price fell by just under 2.5%.