C&C report drop in revenue

C&C today warned over half-year revenues as it revealed a 10% fall in cider sales so far this summer.

The Dublin-based group, which makes Bulmers (Magners) cider and key Tullamore Dew, said a group-wide sales decline of 8% for the four months to June 30 would leave interim revenues short of last year.

But the group added that better profit margins had protected earnings and would offset the expected half-year sales disappointment.

C&C launched a turnaround plan earlier this year to cut costs by €10m a year and boost margins.

Around 150 jobs were axed as part of the overhaul, although Magners beefed up its British division with the appointment of a new managing director.

The group launched Magners Draught across Britain in May and said, despite a slow start due to initial equipment supply problems, the new product was “progressing well”.

While sales of its flagship cider brands have seen double digit falls, the group added that its sales of spirits and liqueurs – such as Carolans Irish Cream and Frangelico – rose 3% in the four months to June 30.