C&C profits plummet

C&C has announced a 33% fall in its operating profit for the six months of the year up to August 31, 2007.

The drinks manufacturer reported profits of €67.9m for the period with revenue flat at €375.6m.

This decline is due to a combination of a decline in sales in the group’s cider division, increased marketing investment and the cost of additional manufacturing capacity.

The sales volume outcome was due principally to a decline in the Irish cider market, due to poor weather, and a loss of share in the on-trade cider market in the UK.

Maurice Pratt, Group Chief Executive Officer, said: "The financial performance reflects a number of factors such as exceptionally poor summer weather; increased competition; and additional costs in marketing and cider manufacturing capacity.

"C&C has conducted an extensive review of its performance and market position and has taken certain corrective steps which will extend in the coming months to a broader series of measures to sharpen its competitive capability and to implement a comprehensive restructuring and cost reduction programme.

"These measures are intended to restore growth in revenue and operating margin in 2008/09 and beyond."