Drinks group C&C told shareholders at its AGM in Dublin today that both revenues and operating profits, for the first four months of its financial year, are 'significantly' ahead of expectations. Its shares jumped over 5% this afternoon after the news.
The company said that this is due to better than expected sales growth of its UK cider brand, Magners, following its national rollout there in March. It also reflects the good performance of its Irish cider brand, Bulmers, and the benefit of good early summer weather, it added.
C&C said that there had been some disruption to the supply of both soft drinks and cider to some customers since June due to a shortage of carbon dioxide to the UK and Irish markets.
'While this supply constraint is impacting certain aspects of its business, C&C does not currently expect that it will have a material adverse effect on the group's overall financial performance in 2006/2007,' the company told shareholders.
C&C announced on Wednesday that it had agreed to sell its Tayto crisps brand to Largo Foods for €62.3m. The deal is expected to be completed before the end of this year and its proceeds will be use to pay down debt.
C&C shares closed up 37 cent to €7.38 in Dublin.
