Shares in drinks group C&C tumbled by more than 15% in Dublin after it lowered its estimate of cider sales for its current financial year because of the bad weather this summer.
Its shares closed down 15%, or €1.59, at €8.55 in Dublin this afternoon, wiping more than €500m off its value.
In a statement issued ahead of its AGM in Dublin, the company said very poor weather in June and into July was likely to lead to a weak second quarter. It also referred to heavy price competition in the drinks market, which would lead to flat profits this year.
C&C said revenue in the first quarter to the end of May was 15% ahead of a year earlier, with sales of Magners in Britain jumping 89% and Bulmers in Ireland up 2%.
But margins were three points lower due to increased spending on marketing, increased raw materials costs and higher manufacturing costs linked to an expansion of its cider capacity. C&C is spending €160m this year on increasing its cider making capacity.
As a result, operating profits for the first half of its financial year would show a fall compared with the same period last year, while full-year operating profits would be flat.
