C&C profits in line with forecasts

Drinks group C&C today posted annual results for the year to end February with profits broadly in line with analysts' expectations.

The company, makers of Bulmers cider, said revenue for the period fell by 11% to €514.4m, down from €597.5m the previous year, while there was a trading loss of €59m.

Excluding once-off charges, operating profits were down 27% from a year earlier to just over €90m.

Exceptional charges resulted in a basic loss per share of 19.4c, while earnings per share declined by 15% to 25.4c.

"This performance reflects a rapid deterioration in economic conditions in the Group’s core markets over the past year and the consequent impact on consumer spending," the company said, adding that it also reflected an increasing shift from pub sales to the off-licence market.

"Performance was adversely affected by a second consecutive period of poor summer weather during 2008 and a substantial strengthening of the Euro against Sterling reducing the Group’s cost competitiveness in the UK."

In an Interim Management Statement for the 12 weeks to May 12, 2009, the company described trading for the first 10 weeks the 2010 financial year as "mixed", with overall revenues for the period flat year-on-year despite a 9% increase in volumes in its core cider market.

Looking forward, the company said its objective for the coming year is to stabilise cider volumes and deliver operating profits of €77 - €82m.