C&C Group sees 6% rise in full year profitTuesday 20 May 2014 08.47
C&C Group has seen its operating profit jump by almost 6%, with the drinks group earning €116.2m in the year to 28 February.
Net revenue at the group was 30% higher at €620.2m, as sales in Ireland and Scotland performed particularly well.
C&C Group owns a number of cider and lager brands - including Bulmers (branded Magners outside of Ireland) and Tennents.
In late 2012 it acquired distribution company Gleeson Group, which in included Tipperary Water and Finches brands.
In the Republic, the group saw its operating profit rise by 9.4% to €43m, due to a rise in sales volumes and a reduction in marketing spend.
Its British cider business declined, however, with revenue down almost 13% to €164.1m on a constant currency basis.
Operating profit in the area took an even sharper decline, falling 29.1% to €20.7m.
C&C said the British cider market had commoditised following the arrival of new brands and the extension of others, however it said it had launched a new advertising campaign and pushed on with investment plans in order to counter that.
Internationally, the company saw revenues rise by 69.3% to €79.9m, while operating profits jumped 68.4% to €16m on the back of increased exports to Canada, Australia and Asia.
C&C said its international business now accounted for 12.6% of its overall operating profit, however it noted a decline in its US business as competition intensified.
The group has spent the last year improving its wholesale network in the country, and said its entire business in the country is now managed by one team on a single site.