C&C operating profit up 17%

Drinks company C&C Group has today announced a 17% increase in operating profit to €105m. before exceptional items, for the year ended February 28, 2011.

Net debt was reduced by €359m to €6m in 2010/11.

Adjusted diluted Earnings Per Share (EPS) increased 12% to 25.4 cent, with a proposed final dividend increase of 10% to 3.3 cent per share, delivering a full-year dividend per share of 6.6 cent.

Magners volume grew 4% year-on-year, reflecting 3.6% growth in Great Britain and 33.8% export growth.

Bulmers volumes declined of 2.4% year-on-year in the Irish market, which the company described as "challenging".

"We will continue to deliver on and to evolve these objectives in 2011/12," said C&C Group CEO John Dunsmore.

"Through the acquisition of the Tennent’s and Gaymers businesses, we have substantially enhanced our scope and strength within the LAD market.

"Our principal cider brands, Bulmers and Magners, are in good health. The Group’s balance sheet strength and cash generation capability provide us with financial flexibility to invest in the continuing development of our business and to support our brands.

"While we have not assumed any pick up in consumer spend within the next 12 months, the shape of our business today should sustain earnings growth.

"We currently expect operating profit to grow from €100.5m for FY2010/11 to a range of between €108m and €115m for the financial year ending 28 February 2012."