C&C profits up 3.5%

Operating profit at drinks and snacks group C&C was up 3.5% to €115.1m in the year to the end of February, the company said today in the group's first annual results as a public, listed company.

C&C also reduced its net debt by €40m to €441m in the year. Volume of the group’s international cider brand, Magners, increased by 61%.

C&C group chief executive officer Maurice Pratt said: "C&C is pleased to report progress in line with expectations. Our first annual results as a public, listed company represent a significant milestone in our history.

"We are equally pleased to report top and bottom line growth in a trading environment characterised by a number of adverse factors. This, we believe, demonstrates the resilience of our business."

The proposed final dividend of 7.5 cent per share will be paid on July 11 to ordinary shareholders registered at the close of business on May 20, 2005. The group’s full year dividend will therefore amount to 13c per share.

C&C said Ireland's buoyant economy augured well for its sales, though a decline in pub sales was expected to continue, albeit at a slower pace.

The group is focussed on investing in the Bulmers brand in Ireland and Magners in the UK, including rolling out Magners in the greater London area in the latter half of this year and early next year.

Meanwhile, the recent announcement of a recommended offer by drinks giant Pernod Ricard for rival Allied Domecq may, if it goes through, have an impact on C&C, the company admitted today.

Allied Domecq distributes about 75% of C&C’s International Spirits & Liqueurs volume.

"We are confident that we can secure alternative distributors if necessary. However a change could have a short-term disruptive impact," C&C said.

Meanwhile, C&C’s distribution business in Ireland (which is part of the alcohol division) includes distribution of Allied Domecq brands. Agreements for the distribution of these brands expire on January 31 next year. C&C said it was possible that some or all of these agreements may not be renewed.