Drinks group C&C has reported pre-tax profits of €105.7m for the six months to the end of August. This was up from €58.1m the same time last year on the back of strong growth from the group's cider division in both Ireland and the UK.
The company said that operating profits were up 66% to €113.5m while its earnings per share rose by 77% to 28.7 cent. Revenues rose by 27% to €532.1m in the six month period.
C&C said revenue for the cider division jumped by 86.6% to €269.5m and reflects an increase of 85% in sales volumes. Operating profit doubled to €90m against €45.1m in 2005.
The group's international cider brand, Magners, having been previously launched in Scotland and Greater London, was successfully rolled out nationally in the UK at the start of the fiscal year. C&C said the roll-out was helped by the excellent summer weather in the UK. The overall volume growth for the brand was 264% for the six months.
C&C's Irish cider brand Bulmers grew by 7% in volume terms in the six months to the end of August. This was against a flat overall LAD market in Ireland.
Reflecting growing demand for the drinks, C&C said last month it would invest €200m to double cider-making capacity over the next 18 months.
C&C agreed to sell its snacks subsidiary Tayto Crisps in July for €62.3m. It said the proceeds of the sale will be accounted for its next set of results to the end of February 2008. The money will be used to reduce debt at the company.
Revenue for C&C's International Spirits and Liqueurs division was up 24.9% to €36.1m. Operating profits increased by 28.9% to €9.8m against €7.6m the same time last year. C&C said that Tullamore Dew continued to show good growth while Carolans showed a strong recovery in its main market, North America.
Revenue at C&C's Soft Drinks & Snacks division was down 3.1% on €125.3m. Operating profits inched up to €13.5m from €13.3m the same time last year. C&C said the overall soft drinks market volume grew by an estimated 2-3% in the six month period, partly reflecting the favourable summer weather with a modest decline in carbonated soft drinks offset by strong growth in bottled water.
Revenues at the group's distribution division was down 13.4% to €101.2m, while operating profits plunged by 92% to €0.2m from €2.4m the same time last year. C&C said this decline was due to the loss of the former Allied Domecq brands, weaker demand for premium wines and reduced margin on LAD agency brands.
C&C said it expects the strong market performance of its cider division to be sustained in the second half of its fiscal year.
'The cider division is the principal driver of C&C's earnings growth and its performance should lead to an acceleration in the rate of overall group operating profit growth for the second half of the 2006/2007 year compared with the rate of growth in the half year to August 31 2006,' the company said.
It said that beyond 2006/2007, the group's primary objective is to deliver continued earnings growth through the further development of Magners in the UK and Bulmers in Ireland and Tullamore Dew internationally.
'C&C has commenced an expansion of its cider manufacturing capacity in Clonmel at an approximate cost of €200m to support sustained growth,' the company concluded.
C&C shares closed down 28 cent at €11.15 in Dublin.
