Interim results from food and drink group C&C, their first since flotation, show first half operating profit of €64.2m, and the firm said it expected to deliver earnings in line with market expectations for the full year.
C&C said it expected to report a 4% rise in turnover for the six months to August 31, and said it would pay an interim dividend of 5.5 cents per share.
Group chief executive Maurice Pratt said the trading environment for the period was characterised by a number of adverse factors, including unseasonal summer weather, a mixed tourist season and the introduction of the smoking ban.
'Against this background C&C's results demonstrate its defensive growth characteristics and resilience and its cash flow generation capability,' he said.
C&C said highlights of the period included growth in its main brand Bulmers by 4%. It said that spirit and liqueur brand sales grew by 17%. Magners, the export name for Bulmers, has been rolled out in Scotland and marketing investment in the period was increased by 21%.
On RTÉ's Morning Ireland today, Maurice Pratt said the results were 'modestly ahead of expectations of the market, and a very good start for us in our life as C&C'.
He said bad summer weather and the smoking ban had all had an impact in the sector, but that Bulmers had outperformed the market, with cider sales very strong.
On the nutrition side, Pratt said that C&C had responded well to consumer demands for healthy snacks, and launched its 'Honest' Tayto range.
Tony O'Brien, C&C's chairman, said: 'Our first reported results as a public, listed company represent a milestone in our history. C&C is pleased to report progress in line with expectations. Our objective is to continue to establish a track record of performance and, in time, to demonstrate the unique characteristics of the C&C Group.'
'The favourable prevailing economic conditions in Ireland are expected to continue throughout the remainder of fiscal year 2005. While the impact of the smoking ban, over the winter months, is unpredictable, the group believes that it is on track to deliver earnings in line with current market expectations,' he added.
C&C shares closed seven cent higher at €2.38 in Dublin this evening, a gain of over 3%.
