C&C reiterates full-year operating profit guide

Irish drinks giant C&C has reported a 1.8% year-on-year increase in third quarter sales volumes for its domestic business; with management reiterating full-year operating profit guidance.

In its third quarter trading update — covering the three months to the end of November — C&C said that sales volumes for its Bulmers cider brand rose by 0.9% here, while its beer volumes were up by 7%. However, net revenue for the group’s Irish division was down by 3.5% on a year-on-year basis.

Management called the third quarter performance, for the Republic, “a significant improvement” on the first half of the year, with trading conditions stabilising, as expected, after the unseasonably wet summer. For the nine months to the end of November, C&C’s Irish sales volumes were down by 1.6%, year-on-year, with net revenue down by 10%.

In Britain, the quarter proved something of a mixed bag for C&C. Its cider volumes (encompassing its main Magners and Gaymers brands) were down by 11.9%, with net revenue down by over 19%.

Meanwhile, its lager-based Tennent’s UK division showed year-on-year sales volume decline of 3.6% but a healthy 7.5% rise in net revenues.

C&C’s management said that sales volumes in its international (outside of Ireland and Britain) beer and cider division grew by over 28% in the third quarter; with Magners up by 16% in North America alone.

Management also, yesterday, reiterated its full-year guidance of operating profit coming in at the lower end of the €112m-€118m range, before the benefit of acquisitions.