Drinks group C&C has reported that its profits almost doubled in the year to the end of February, again lifted by a strong performance from its Magners cider brand in Britain.
Operating profits were up 77% to €212.6m, as turnover rose 27% to €981.4m and margins climbed by six points to 21.7%.
Net profits were up 85% to €179.2m, with a lower debt level leading to reduced interest charges.
A breakdown showed cider sales were up 86% at €517.9m, with profits doubling to €178.9m. Magners now has a 1.7% share of the market in Britain, but growth was held back by lack of manufacturing capacity.
The group is expanding its Clonmel facility to cope with the increased demand and expects increased capacity to be ready this month. It is also planning to introduce Magners into Barcelona and Munich on a test basis, but says it will be October before it can make any assessment of the brand's prospects. In Ireland, Bulmers sales volumes were up 6%.
Revenue in the spirits division grew by 14% to €79.1m, with profits 6.6% higher at €17.7m, with Tullamore Dew whiskey performing well. But soft drinks sales fell 1.4% to €185.2m, though profits rose 20.5% to €15.3m. C&C lost the rights to the Danone water brands during the period.
Sales and profits also dropped in the distribution division because of the loss of brands from Allied Domecq. Revenue was down 15% to €199m and profits dropped 87% to €700,000.
Earnings per share were up 84% to 54.9 cent and a final dividend of 15 cent gives an 80% higher total of 27 cent. C&C also announced plans to return €150m to shareholders. It expects operating profit growth of 15-25% in the current year.
Shares in the company closed down ten cent at €12.40 in Dublin this evening.
