Drinks and snack group C&C has reported a pre-tax profit of €93.5m for the year ending February 28, 2005, up from €54.4m the same time last year. The figures were in line with expectations.
Turnover during the year rose by 4.2% to €750.4m and the company said that the improvement in Irish consumer spending should be good for the group.
C&C, which produces Bulmers cider in Ireland and Ballygowan mineral water, said that its operating profit grew by 3.5% to €115.1m. The company has proposed a final dividend of 7.5 cent per share, with the group's full dividend growing to 13 cent per share.
The group said that it might be affected by Pernod Ricard's bid for Allied Domecq, which currently distributes about 75% of C&C's international spirits and liqueurs volume, but that it should only cause short term disruption.
'Our first annual results as a public, listed company represent a significant milestone in our history,' commented Maurice Pratt, C&C Group Chief Executive Officer.
'We are equally pleased to report top and bottom line growth in a trading environment characterised by a number of adverse factors. This, we believe represents a worthy performance and demonstrates the resilience of our business,' he added.
C&C said that exchange rate movements in the 12 months adversely affected operating profit by €6.7m. This is made up of a loss in the international Spirits and Liqueurs division arising from exposure to the US and Canadian dollar and a gain from exposure to sterling.
Turnover for C&C's alcohol division increased by 7.3% in the year. This comprises a 9.8% increase for cider brands and a 5.2% increase for distribution. C&C said that the ban on smoking in pubs, which came into effect in March 2004, had a significant impact on the Long Alcohol Drinks markets.
During the year, C&C's international cider brand Magners increased its distribution in the UK, where the on-trade LAD market is eight times the size of Ireland. Sales volume for the brand jumped by 61%.
Turnover for the International Spirits and Liqueurs division increased by 4.7%, reflecting shipments volume growth of 7%. C&C's premium Irish whiskey brand, Tullamore Dew, performed well with 17% growth in shipments in the year.
The company's Irish cream liqueur brand Carolans was relaunched last year and shipments growth was recorded at 4%.
Turnover for the Soft Drinks and Snacks division declined by 1.2% in the year. Margins in soft drinks were adversely affected by the impact of the estimated 12% volume decline in the on-trade soft drinks market, reflecting the impact of the smoking ban on the on-trade and the decline in soft drinks mixer usage because of the decline in spirits sales.
The overall savoury snacks market was flat in the year.
C&C shares were down five cent to €3.25 in Dublin this evening.
