C&C loss of fizz prompts analysts to trim earnings forecasts

Analysts are set to trim their full-year earnings forecasts for C&C on the back of a mixed first-quarter trading update from the drinks group, which pointed to a slow start in its key markets of Ireland and Scotland.

The group owns the Bulmers/Magners cider brands and Tennent’s lager. It said yesterday unseasonably cold and wet weather during the period negatively affected trade in its two main regions, which together accounted for 85% of group earnings last year.

Despite the weaker-than-expected trading conditions, it still anticipates a “gradual improvement” in core market performance as the year progresses, adding that its current financial year — which runs to the end of next February — is one of “stabilisation and investment” for the business.