Fine weather helps boost C&C revenues by nearly 30%
The good summer weather wiped out a disappointing first quarter and helped boost group net revenue — for the six months to the end of August — by 27.8% to €336.7m; operating profit (before exceptionals) rising by 8% year-on-year to €71.1m. Total operating profit — after exceptional items — amounted to €55.6m, down from €65.8m for the same period last year. Adjusted earnings per share increased by 1% to 16.3c and management has reiterated its full-year forecast of operating profit within the €125m to €132m range.
Pre-tax profit for the six months came in at €50.5m, post-exceptional items, but on a pre-exceptional basis was up by €2m at €66m.
On a divisional basis, revenue in Ireland increased by 8.7% year-on-year to €181.2m, with operating profit up by 12% to €28.2m. This performance was boosted by a 1% rise in net revenue in the cider category and a near 4% jump in beer volumes.
Also of significance was the fact that Bulmers outperformed the broader long alcoholic drinks (LAD) market, with the on-trade outperforming the off-trade channel for the first time in seven years.
C&C is also looking to make its presence felt — in the medium term — in the growing craft beer sector, investing in a craft brewery at its existing Clonmel facility.
In the UK, meanwhile, C&C saw first half revenues dip by 15.5%, on the same period last year, to €92.4m and operating profit fall by just over 31% to €13.7m. The Magners brand underperformed the wider market during the period, with volumes declining by 10.4%; although some improvement was notable in the second quarter. Indeed, management noted that improved performances were notable in each of the group’s domestic markets during the second quarter of its financial year, aided by the warmer summer weather.
The group’s share price was up by nearly 3% at around €4.12 yesterday.
