Bulmers owner saw cider sales benefit as consumers ‘drink earlier’ at food-led events

C&C group says  operating profits up 4% to €43.4m for the six months ended August 31

Bulmers cider owner C&C says its sales of beer and cider benefited as Irish consumers drank earlier in the day at food-led social occasions, the company said, as it published its six-monthly interim results.

Bulmers cider owner C&C says its sales of beer and cider benefited as Irish consumers drank earlier in the day at food-led social occasions, the company said, as it published its six-monthly interim results.

The group recorded operating profits up 4% to €43.4m in its financial statement for the six months ended August 31.

C&C Group manufactures, markets and, distributes branded beer, cider, wine, spirits, and soft drinks across Ireland and the UK, with brands including leading Irish cider brand Bulmers, produced in Clonmel, and sold as Magners internationally; Scottish beer brand Tennent’s, and Orchard Pig. C&C is also the leading drinks distributor to the Irish and UK hospitality sectors.

The company said it delivered a solid first-half performance in the six months, "against a market backdrop that remained challenging for hospitality customers and consumers, albeit supported in parts by favourable weather and the FIFA World Cup".

C&C said Irish consumers continued to "balance cost-of-living pressures against a desire to maintain social and leisure occasions."

It said across Ireland and the UK, beer and cider continued to benefit from "evolving consumer drinking occasions". "Consumers are increasingly drinking earlier in the day, socialising more frequently around food-led occasions and adopting broader drink repertoires, trends which continue to support the long alcoholic drinks category. Beer and cider remained at the centre of these occasions and continued to gain share of drinks spend," the financial statement said.

In contrast, wine and spirits remained more subdued, particularly within hotels, restaurants and casual dining.

C&C's group net revenue was €794.9m, down 3% year on year, but branded revenue grew by 3%, supported by continued momentum in Tennent’s and Bulmers, favourable summer weather and targeted activity around the World Cup. The company reported a 4% decline in its distribution business as some lower-margin customer business was exited as planned.

New Bulmers variants Strawberry & Lime and Bulmers Berries delivered "encouraging"  early performance over the six-month period, and last month the company entered the booming stout market with the launch of Tennent’s Stout in Scotland. The interim results said the company is on track to achieve full-year operating profit in line with market expectations, with the key Christmas trading period approaching.

“We have delivered a solid first-half financial performance, reinforcing our actions to build resilience in our business," said chief executive Roger White on Wednesday. "The general economic environment remains volatile, and we have the important festive trading period yet to deliver. However, we have strong trading plans in place for the balance of the year alongside a number of brand initiatives and the delivery of our developing innovation agenda, all of which give us confidence in our ability to meet market expectations for the full-year.”

The company set an interim dividend at 2c per share.