C&C profits set to show 10% fall

C&C Group expects to post a 10.4% reduction in operating profits when it publishes its latest annual results in May.

The Dublin-headquartered drinks group — most notable for its twin Bulmers/Magners cider brands and Tennent’s lager — yesterday said that profit for the 12 months to the end of February is likely to be “in the region of €103m”.

That would be down by over 10% on the €115m operating profit generated in the preceding year, which itself represented an annual decline of 9.2%.

However, the group said trading in the last quarter of its financial year provided “grounds for optimism,” adding that “the board is confident in the earnings prospects of the group” in the current year which runs to the end of next February.

A pick-up in trading was seen in Scotland in the last quarter of the year, but Bulmers suffered in Ireland as the cider category continued to lose ground.

Management said, however, the export of its own brands should deliver 20% volume growth for the year and the group is well-positioned to sustain export momentum through the next 12 months.

C&C also yesterday announced an expansion of its partnership with Pabst Brewing Company, the world’s largest US-owned brewer. Since December, Pabst has the exclusive American distribution rights to C&C’s brands and now C&C has the rights to do likewise with Pabst’s brands in Ireland and Britain.

The deal with Pabst gives C&C an exit option from the US as the Los Angeles-based group also has a long-term option to buy C&C’s US cider brands and related assets.